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ities to stockholders equity h owing data were taken from Alvarado Companys balance sheet: Dec. 31, 2014 Dec 31, 2043 $4,20
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Answer #1

Liabilities to Stockholders Equity = Liabilities/Equity

Dec 31,2014 = 4,200,000/4,200,000 = 1

Dec 31, 2013 = 2480,000/3,100,000 = 0.80

B.lower the ratio, better it is for the creditors

Hence, the risk has increased for creditors from 2013 to 2014

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