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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, 2013 Total liabilities $5,000,000

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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, 2013 Total liabilities $5,000,000 $2.475,000 Total stockholders' equity 5,000,000 3,300,000 o. 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, 2013, to December 31, 2014

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