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Pet supplies in reported total assets at December 3 1 totaling $ 2 4 5 , 5 0 0 . At the end of the

Pet supplies in reported total assets at December 31 totaling $245,500. At the end of the year pet supplies had a long-term debt to equity ratio of 0.27. What will happen to its long-term debt to equity ratio if pet supplies shareholders contribute an additional $10,000 in exchange for additional common stock on Hey, it will increase because the companies net worth is larger. Be it will increase because the company now owes more to with shareholders. See, it will decrease because the company shareholders equity increased at the same rate as the increase in liabilities will decrease because the portion of the company financed with shareholders equity increased while the debt portion remained constantJanuary one of the following year?

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