Rent-A-Center Selected Data from the Financial Statements Are Provided Below

question 105

Multiple Choice

Rent-a-Center Selected data from the financial statements are provided below:
$\begin{array}{lll}& \underline { 2015 }& \underline { 2014 }\\\text { Current Assets } & \$ 12,000 & \$ 6,000 \\\text { Long-T eim Assets } &14,000 & 8,000 \\\text { Current Liabilities } &4,000 & 6,000 \\\text { Long-T em Liablities } &14,000 & 0 \\\text {Stockholder's' Equity } &8,000 & 8,000 \\\text { Net Sales } &19,000 & 18,200 \\\text { Net Income } &2,000 & 1.000\end{array}$

-Refer to Rent-a-Center.Which of the following is true regarding the debt management ratios between 2014 and 2015?

• A)The debt-to-equity and debt-to-total assets ratios both increased.
• B)The debt-to-equity and total debt-to-total assets ratios both decreased.
• C)The debt-to-equity and long-term debt-to-equity ratios both decreased.
• D)The debt-to-equity ratio decreased and the debt-to-total assets ratios increased.

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