Question
Selected data from the financial statements of Blue Jays Ltd. are provided in the following table: Year 2 Year 1 Current assets $12,000 $6,000 Long-term
Selected data from the financial statements of Blue Jays Ltd. are provided in the following table: Year 2 Year 1 Current assets $12,000 $6,000 Long-term assets 14,000 8,000 Current liabilities 4,000 6,000 Long-term liabilities 14,000 0 Shareholders' equity 8,000 8,000 Net sales Net income 19,000 18,200 2,000 1,000 Refer to Blue Jays Ltd. Which of the following happened to the debt management ratios between Year 1 and Year 2? The debt-to-equity and debt-to-total-assets ratios both decreased. The debt-to-equity ratio increased and the debt-to-total-assets ratios decreased. O The debt-to-equity and debt-to-total-assets ratios both increased. The debt-to-equity ratio decreased and the debt-to-total-assets ratios increased
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