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Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2014 Dec. 31, 20Y3 Total liabilities $4,050,000

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Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2014 Dec. 31, 20Y3 Total liabilities $4,050,000 $2,320,000 Total stockholders' equity 4,500,000 2,900,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to 2 decimal places. Dec. 31, 2014 Pec. 31, 20Y3 b. Has the creditor's risk increased or decreased from December 31, 2043, to December 31, 2014? Increased Feedback

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