Selected Financial Data for Rescue Rooter Are Presented Below -Refer to the Figure Rescue Rooter

question 142

Multiple Choice

Selected financial data for Rescue Rooter are presented below:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Total liabilities } & \$ 1,205,000 & \$ 952,000 \\\text { Common shares } & 250,000 & 225,000 \\\text { Paid-in capital in excess of par - common shares } & 150,000 & 135,000 \\\text { Retained earnings } & 155,000 & 145,000\end{array}$
-Refer to the figure Rescue Rooter.What does the Rescue Rooter's debt-to-equity ratio for Year 2 indicate?

• A) It is increasing, which may be a cause of concern for the company.
• B) It is increasing, which is always a good sign from the viewpoint of investors.
• C) It is decreasing, which may be a cause of concern for the company.
• D) It is decreasing, which is always a good sign from the viewpoint of investors.

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Definitions:

Cryonics

The low-temperature freezing (usually at −196°C) of a human corpse or severed head, with the speculative hope that resurrection may be possible in the future.

Cremation

The process of burning the dead body to ashes as part of funeral rites.

Long-term Care

Long-term care involves a variety of services designed to meet a person's health or personal care needs during a short or long period of time, typically for individuals who are unable to perform everyday activities independently.

Daily Living

Activities and tasks that a person engages in on a day-to-day basis, including personal care, household tasks, work, and leisure activities.