Given the Following Data:Dec

question 155

Essay

Given the following data:Dec. 31,Year 2 Dec. 31,Year 1Total liabilities $128,250 $120,000Total owner's equity 95,000 80,000
(a) Compute the ratio of liabilities to owner's equity for each year.
(b) Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

---

Definitions:

Seafloor

The seafloor is the bottom of the ocean, consisting of various geological features including plains, ridges, trenches, and volcanoes, significantly influenced by tectonic movements.

Christchurch Earthquake

A significant seismic event that struck the Christchurch region of New Zealand in February 2011, causing widespread damage and fatalities.

Canterbury Earthquake

A significant seismic event that occurred in the Canterbury region of New Zealand, most notably in February 2011, causing widespread damage and loss of life.

Magnitude

A measure of the amount of energy released by an earthquake; used to compare sizes of earthquakes.