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Ratio of liabilities to stockholders' eq The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2014 Dec. 31, 20Y3 Total liabilities $4,600,000

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Ratio of liabilities to stockholders' eq The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2014 Dec. 31, 20Y3 Total liabilities $4,600,000 $2,475,000 Total stockholders' equity 4,600,000 3,300,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to 2 decimal places. Dec 31, 2014 Dec. 31, 2013 b. Has the creditor's risk increased or decreased from December 31, 2043, to December 31, 20Y4

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