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The following data were taken from Alvarado Companys balance sheet: a. Compute the ratio of liabilities to stockholders equity for each year. b. Has the creditors risk increased or decreased from December 31, 20Y3, to December 31, 20Y4? Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities Total stockholders' equity $4,085,000 4,300,000 $2,880,000 3,600,000

Chapter 1, Brief Exercises #8

The following data were taken from Alvarado Company’s balance sheet:

Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities Total stockholders' equity $4,085,000 4,300,000 $2,880,000 3,600,000


a. Compute the ratio of liabilities to stockholders’ equity for each year.

b. Has the creditor’s risk increased or decreased from December 31, 20Y3, to December 31, 20Y4?

Transcribed Image Text:

Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities Total stockholders' equity $4,085,000 4,300,000 $2,880,000 3,600,000

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a. Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities................................................................ …View the full answer

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Related Book For answer-question
Forensic And Investigative Accounting

Forensic And Investigative Accounting

10th Edition

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

ISBN: 9780808056300

Answers for Questions in Chapter 1

Brief Exercises:
Continuing Problem:
Decision-Making:
Discussion Questions:
Exercises:
Problem A:
Problem B:
Take It Further:

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