DEBT MANAGEMENT RATIOS Below are selected data from the financial statements of Jewell Company for 2008 and 2009.

2009 2008 Total liabilities $1,205,000 $952,000 Common stock ($30 par) 250,000 225,000 Paid-in capital in excess of par—common stock 150,000 135,000 Retained earnings 155,000 145,000 Required:

Determine whether the debt-to-equity ratio is increasing or decreasing and whether the company should be concerned.

Cornerstone Exercise