I need the Ratio completed

Chapter 1 dction to Accounting and Business Analysis for Decision Making Ratio of Liabilities to Stockholders' Equity Objective Describe and strate the use of me ratio of abilities to stockholders equity in evaluating a company's financial condition ition of a come company's finance on Making se ory of a company the hus financial statements illustrated in this chapter are useful to bankers, credits and achers in analing and interpreting the financial performance and condition of a V ous tools and techniques that are often used to analyze and interpreta company's performance and condition are described and illustrated in the Analysis for Decision Makin at the end of selected chapters. We begin with a method for analyzing the ability of a com puy its credito The relationship between liabilities and stockholders' equity can be expressed as a liabilities to stockholders' equity, as follows: Total Liabilities Ratio of Liabilities to Stockholders' Equity Total Stockholders' Equity ressed as a ratio NetSolutions ratio of liabilities to stockholders' equity at the end of November is 0.015 (1 computed as follows: $400 Ratio of Liabilities to Stockholders' Equity - 0.015 rounded) 526,050 Since the total liabilities are only 1.5% of the total stockholders' equity, NetSolutions is in a su position to pay its creditors. Often, a company's financial performance or condition can be compared to another com in a similar industry. For example, recent balance sheet data for Twitter and Google Inc. at December 31 follow in millions): Twitter Google End of Year 1 Total abilities $416 $ 23,611 Total stockholders' equity 2,950 87,309 End of Year 2 Total abilities $1.957 Total stockholders' equity $ 26,633 3,626 104,500 The ratio of abdities to stockholders' equity for Twitter and Google are computed as follows Ratio of Liabilities to Stockholders' Equity Total Liabilities - Total Stockholders' Equity Twitter: Google: End of Year 1: End of Year 1: $23,611 $416 $2.950 0.14 $87,309-027 End of Year 2 $1.957 5. -054 End of Year 2 $26,633 $104.500 -0.25 The rights of creditors to a business's assets come before the rights of stockholders. Thus the lower the ratio of liabilities to stockholders' equity, the better able the company is to win stand poor business conditions and to pay its obligations to creditors. Google is a very profitable company that requires very little debt. Google's ratio of liabil to stockholders' equity was 0.27 at the end of Year 1, while decreasing slightly to 0.25 at end of Year 2. Ratios less than 1.0 are protective to creditors. Thus, Google's ratios indicate creditor risk. In contrast, Twitter's ratio of liabilities to stockholders' equity at the end of 2 is nearly twice that of Google's, indicating more risk to Twitter's creditors. Creditors no would not be concerned with a liabilities to stockholders' equity ratio of 0.54. However, growth in this ratio from 0.14 to 0.54 within one year indicates that Twitter is increasing debt. This increase in the use of debt should be monitored. Chapter 1 Introduction to Accounting and Business Make a Decision Ratio of Liabilities to Stockholders' Equity Apple Inc. and Hewlett-Packard Co (HP) compete in the electronics industry. The liabilities and stockholders equity at the end of two recent years for both companies follow. Apple $ 83,451 123,549 578,020 27.269 End of Year 1 Liabilities Stockholders' equity End of Year 2 Liabilities Stockholders' equity $120.292 111,547 $76,079 26.731 B A Compute the ratio of abilities to stockholders' equity for each company for each year. Round to two decimal places On a line chart, plot each company's end-of-year ratios of lubilities to stockholders'equity. Use a separate line to connect the two ratios for each company. you were a creditor, to which company would you prefer to loan money! D. Which company has shown the larger change in creditor risk between the two years? c Solution: B - Apple HP Ratio of Liabilities to Stockholders' Equity Total Liabilities Total Stockholders' Equity HP: Apple: Year 1: $83.451 --07 $123549 Year 1: 570.020 $27.269 $76,079 $26,731 $120.292 Year 2 Year 2 $111.547 C 0.0 + End of Year End of Year 2 HP's ratio of liabilities to stockholders' equity is more than twice as large as Apple's ratio at the end of each year. Thus, HP is more risky to creditors. You should prefer to lend money to Apple over HP. Apple has the larger change in creditor risk between the two years. Its ratio of liabilities to stockholders' equity Increased from 0.7 to 1.1. or approximately 57% (1.1 -0.7) + 0.7). In contrast, HP's ratio changed little between the end of the two years. The change in Apple's ratio is due to using debt to finance the purchase of its own common stock. As a result, its stockholders' equity decreased, while its long-term debt increased, causing an increase in its ratio D Make a Decision Chapter 1 dction to Accounting and Business Analysis for Decision Making Ratio of Liabilities to Stockholders' Equity Objective Describe and strate the use of me ratio of abilities to stockholders equity in evaluating a company's financial condition ition of a come company's finance on Making se ory of a company the hus financial statements illustrated in this chapter are useful to bankers, credits and achers in analing and interpreting the financial performance and condition of a V ous tools and techniques that are often used to analyze and interpreta company's performance and condition are described and illustrated in the Analysis for Decision Makin at the end of selected chapters. We begin with a method for analyzing the ability of a com puy its credito The relationship between liabilities and stockholders' equity can be expressed as a liabilities to stockholders' equity, as follows: Total Liabilities Ratio of Liabilities to Stockholders' Equity Total Stockholders' Equity ressed as a ratio NetSolutions ratio of liabilities to stockholders' equity at the end of November is 0.015 (1 computed as follows: $400 Ratio of Liabilities to Stockholders' Equity - 0.015 rounded) 526,050 Since the total liabilities are only 1.5% of the total stockholders' equity, NetSolutions is in a su position to pay its creditors. Often, a company's financial performance or condition can be compared to another com in a similar industry. For example, recent balance sheet data for Twitter and Google Inc. at December 31 follow in millions): Twitter Google End of Year 1 Total abilities $416 $ 23,611 Total stockholders' equity 2,950 87,309 End of Year 2 Total abilities $1.957 Total stockholders' equity $ 26,633 3,626 104,500 The ratio of abdities to stockholders' equity for Twitter and Google are computed as follows Ratio of Liabilities to Stockholders' Equity Total Liabilities - Total Stockholders' Equity Twitter: Google: End of Year 1: End of Year 1: $23,611 $416 $2.950 0.14 $87,309-027 End of Year 2 $1.957 5. -054 End of Year 2 $26,633 $104.500 -0.25 The rights of creditors to a business's assets come before the rights of stockholders. Thus the lower the ratio of liabilities to stockholders' equity, the better able the company is to win stand poor business conditions and to pay its obligations to creditors. Google is a very profitable company that requires very little debt. Google's ratio of liabil to stockholders' equity was 0.27 at the end of Year 1, while decreasing slightly to 0.25 at end of Year 2. Ratios less than 1.0 are protective to creditors. Thus, Google's ratios indicate creditor risk. In contrast, Twitter's ratio of liabilities to stockholders' equity at the end of 2 is nearly twice that of Google's, indicating more risk to Twitter's creditors. Creditors no would not be concerned with a liabilities to stockholders' equity ratio of 0.54. However, growth in this ratio from 0.14 to 0.54 within one year indicates that Twitter is increasing debt. This increase in the use of debt should be monitored. Chapter 1 Introduction to Accounting and Business Make a Decision Ratio of Liabilities to Stockholders' Equity Apple Inc. and Hewlett-Packard Co (HP) compete in the electronics industry. The liabilities and stockholders equity at the end of two recent years for both companies follow. Apple $ 83,451 123,549 578,020 27.269 End of Year 1 Liabilities Stockholders' equity End of Year 2 Liabilities Stockholders' equity $120.292 111,547 $76,079 26.731 B A Compute the ratio of abilities to stockholders' equity for each company for each year. Round to two decimal places On a line chart, plot each company's end-of-year ratios of lubilities to stockholders'equity. Use a separate line to connect the two ratios for each company. you were a creditor, to which company would you prefer to loan money! D. Which company has shown the larger change in creditor risk between the two years? c Solution: B - Apple HP Ratio of Liabilities to Stockholders' Equity Total Liabilities Total Stockholders' Equity HP: Apple: Year 1: $83.451 --07 $123549 Year 1: 570.020 $27.269 $76,079 $26,731 $120.292 Year 2 Year 2 $111.547 C 0.0 + End of Year End of Year 2 HP's ratio of liabilities to stockholders' equity is more than twice as large as Apple's ratio at the end of each year. Thus, HP is more risky to creditors. You should prefer to lend money to Apple over HP. Apple has the larger change in creditor risk between the two years. Its ratio of liabilities to stockholders' equity Increased from 0.7 to 1.1. or approximately 57% (1.1 -0.7) + 0.7). In contrast, HP's ratio changed little between the end of the two years. The change in Apple's ratio is due to using debt to finance the purchase of its own common stock. As a result, its stockholders' equity decreased, while its long-term debt increased, causing an increase in its ratio D Make a Decision