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3. Given the following data: Dec. 31,2014 Dec. 31,2013 Total liabilities $128,250 $120,000 Total owners equity 95,000 80,000 a. Compute the ratio of liabilities to

3. Given the following data:

Dec. 31,2014 Dec. 31,2013

Total liabilities $128,250 $120,000

Total owners equity 95,000 80,000

a. Compute the ratio of liabilities to owners equity for each year.

b. Has the creditors risk increased or decreased from December 31, 2013, to December 31, 2014?

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