Debt Management Ratios}

Glow Corporation provides annual and quarterly financial data to the public. For the years of 2017 and 2018, Glow`s financial data included the following account balances:

\section*{Required:}
Determine whether the debt-to-equity ratio is increasing or decreasing and whether Glow should be concerned.
\section*{OBJECTIVE}
\section*{Brief Exercise

Transcribed Image Text:

2018 2017 Total liabilities $1,390,000 $988,000 Common shares ($25 par) 270.000 235,000 Paid-in capital in excess of par-common 155,000 140,000 shares Retained earnings 167,000 152.000