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Looking at the Balance Sheet TOTAL LiAbilities JULY 3 1 , 2 0 1 6 TOTAL STOCKHOLDER'S EQUITY 1 4 0 , 0 0 0

Looking at the Balance Sheet
TOTAL LiAbilities
JULY 31,2016
TOTAL STOCKHOLDER'S EQUITY
140,000
100,000
JULY 31,2017
125,000
95,000
A. Compute the ratio of liabilities to stockholders equity for each year
B. Has the risk for creditors increased in 2017?
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