The following data were taken from Alvarado Company's balance sheet: a. Compute the ratio of liabilities to
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![The following data were taken from Alvarado Company's balance sheet:
a.](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images14/1243-B-C-A-L(63).png)
a. Compute the ratio of liabilities to owner's equity.
b. Has the creditor's risk increased or decreased from December 31, 2018, to December 31, 2019?
Transcribed Image Text:
Dec. 31,2019 $4,085,000 4,300,000 Dec. 31, 2018 $2,880,000 3,600,000 Total liabilities Total owner's equity
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Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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