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

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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Ratio of liabilities to stockholders' equity
The following data were taken from Alvarado Company's balance sheet:
Dec. 31, 20Y4 Dec. 31, 20Y3
Total liabilities
$4,085,000
$2,880,000
Total stockholders' equity
4,300,000
3,600,000
a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to 2 decimal places.
<
Dec. 31, 20Y4
Dec. 31, 20Y3
b. Has the creditor's risk increased or decreased from December 31, 20Y3, to December 31, 20Y4?
Check My Work 4 more Check My Work uses remaining.
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Transcribed Image Text:CengageNOWv2 | Online teachin x genow.com/ilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignment Session Locator=&... <✩ G : Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's balance sheet: Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities $4,085,000 $2,880,000 Total stockholders' equity 4,300,000 3,600,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to 2 decimal places. < Dec. 31, 20Y4 Dec. 31, 20Y3 b. Has the creditor's risk increased or decreased from December 31, 20Y3, to December 31, 20Y4? Check My Work 4 more Check My Work uses remaining. Next
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