The following data were taken from Miller Company's balance sheet:

	Dec. 31, Year 2		Dec. 31, Year 1
Total liabilities	$150,000		$105,000
Total stockholders' equity	75,000		60,000

a. Compute the ratio of liabilities to stockholders' equity. Round your answers to one decimal place, if necessary.

	Liabilities to Stockholders' Equity
12/31/Year 2:
12/31/Year 1:

b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?