The following data were taken from Alvarado Company’s balance sheet: Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities $4,465,000 $2,625,000 Total stockholders’ equity 4,700,000 3,500,000 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
The following data were taken from Alvarado Company’s balance sheet: Dec. 31, 20Y4 Dec. 31, 20Y3 Total liabilities $4,465,000 $2,625,000 Total stockholders’ equity 4,700,000 3,500,000 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
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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Ratio of liabilities to
The following data were taken from Alvarado Company’s balance sheet:
Dec. 31, 20Y4 | Dec. 31, 20Y3 | |||
Total liabilities | $4,465,000 | $2,625,000 | ||
Total stockholders’ equity | 4,700,000 | 3,500,000 |
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
I don't know how to find the A
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