Below Are Selected Data from the Financial Statements of Moriarty

question 135

Multiple Choice

Below are selected data from the financial statements of Moriarty Company. $\begin{array}{lcr} & \underline{2017} & \underline{2016} \\ \text { Total liabilities }& \$ 1,205,000 & \$ 952,000 \\\text { Common stock }(\$ 30 \text { par) }& 250,000 & 225,000 \\\text { Paid-in capital in excess of par-common stock } & 150,000 & 135,000 \\\text { Retained earnings } & 155,000 & 145,000\end{array}$ The debt-to-equity ratio for 2017 is

• A) increasing, which should be a major cause of concern for Moriarty Company.
• B) increasing, which should be a good sign in investors' eyes.
• C) decreasing, which should be a major cause of concern for Moriarty Company.
• D) decreasing, which should be a good sign in investors' eyes.

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