Problem - Ratio of Liabilities to Stockholder Equity

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Problem - Ratio of Liabilities to Stockholder's Equity

The following data were taken from White Company's balance sheet:

 

Dec. 31, 2012

Dec. 31, 2011

Total liabilities

$375,000

$287,500

Total stockholders' equity

300,000

250,000

Required -

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

b. Has the creditor's risk increased or decreased from December 31, 2011 to December 31, 2012?

Reference no: EM132679290

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