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Below are selected data from the financial statements of Moriarty Company. 2016 2015 Total liabilities $1,205,000 $952,000 Common stock ($30 par) 250,000 225,000 Paidin capital
Below are selected data from the financial statements of Moriarty Company.
| 2016 | 2015 |
Total liabilities | $1,205,000 | $952,000 |
Common stock ($30 par) | 250,000 | 225,000 |
Paidin capital in excess of parcommon stock | 150,000 | 135,000 |
Retained earnings | 155,000 | 145,000
|
The debt-to-equity ratio for 2016 is:
A. | increasing, which should be a major cause of concern for Moriarty Company. | |
B. | increasing, which should be a good sign in investors' eyes. | |
C. | decreasing, which should be a major cause of concern for Moriarty Company. | |
D. | decreasing, which should be a good sign in investors' eyes. |
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