Compute the ratio of liabilities to stockholders equity

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Problem - Ratio of liabilities to stockholders' equity - The following data were taken from Mesa Company's balance sheet:

 

Dec. 31, 20Y6

Dec. 31, 20Y5

Total liabilities

$547,800

$518,000

Total stockholders' equity

415,000

370,000

Required -

a. Compute the ratio of liabilities to stockholders' equity.

b. Has the creditor's risk increased or decreased from December 31, 20Y5, to December 31, 20Y6?

Reference no: EM132748236

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