Year 2 $30,222 $25,270 15,622 11,970 Year 2 million 12,700

Question

Question

Answer 1

Answer #1

a)		Year 2	Year 1
	Total assets	30222	25270
	Total liabilities	15622	11970
	Total stockholders' equity (Total assets-Total liabilites)	14600	13300
b)	Ratio of liabilities to stockholders' equity (Total liabiities/Total Equity)	1.07	0.90
	The risk to the creditors has increased
c)	Total assets	22860	11720
	Total stockholders' equity	12700	11600
	Ratio of stockholders' equity to total assets	0.56	0.99
	The risk is more for the 1st case.

Answer 2

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