Given the Following Data

question 165

Essay

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

Develop concise and precise problem and purpose statements for business reports.

Comprehend the sequential steps involved in the report writing process following problem identification.

Gather, organize, and critically evaluate information for business reports.

Understand the necessity of reports in business and how report types and frequency vary based on job roles and organizational context.

---

Definitions:

Permanent Change

An alteration or modification in processes, behavior, or systems that is intended to last indefinitely, without reversal to original state.

Conversion Theory

A theory suggesting that minority views can influence and ultimately change the majority opinion under certain conditions.

Moscovici

Serge Moscovici is a social psychologist known for his work on social influence and the theory of social representations.

Indirect Impact

Effects or outcomes that are not directly caused by an action or event, but occur as a secondary result.