Given the Following Data A) Compute the Ratio of Liabilities to Stockholders' Equity for

question 54

Essay

Given the following data: $\begin{array}{lrc}&\text { Dec. } 31 \text {, Year } 2&\text { Dec. } 31 \text {, Year } 1\\\text { Total liabilities } & \$ 128,250 & \$ 120,000 \text { Total stockholders' } \\\text { equity } & 95,000 & 80,000\end{array}$ a) Compute the ratio of liabilities to stockholders' equity for each year.
b) Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

---

Definitions:

Developmental Organization

The structured process by which living organisms grow and develop from early stages in their life cycle to maturity, influenced by genetic and environmental factors.

Common Ancestor

The shared ancestor of two or more distinct species or lineages, reflecting their point of divergence in the evolutionary tree.

Vasopressin

A hormone that plays a key role in water regulation in the body and also acts as a neurotransmitter in the brain, influencing social behaviors and bonding.

V1a Receptors

A specific type of receptor in the brain that binds to vasopressin, a hormone involved in social behavior, stress response, and the regulation of water retention.