You have the following information taken from the balance sheets for two successive years for a hotel operation.

For each year calculate:

a. Total assets to total liabilities ratio

b. Total liabilities to total assets ratio

c. Total liabilities to total ownership equity Discuss the changes that have taken place over the two-year period from the viewpoint of an investor who has been asked to loan the hotel money for expansion.

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Year 0004 Total assets $411,200 Total liabilities 302,400 Total stockholders' equity 108,800 Year 0005 $395,700 315,500 80,200