Given the Following Data Compute the Ratio of Liabilities to Stockholders' Equity for Each

question 88

Multiple Choice

Given the following data: $\begin{array}{lrc}&\text { Dec. } 31,2014& \text { Dec. 31,2013 } \\\text { Total liabilities } & \$ 128,250 & \$ 120,000 \\\text { Total stockholders' equity } & 95,000 & 80,000\end{array}$ Compute the ratio of liabilities to stockholders' equity for each year. Round to two decimal places.

• A) 1.50 and 1.07, respectively
• B) 1.35 and 1.50, respectively
• C) 1.07 and 1.19, respectively
• D) 1.19 and 1.35, respectively

---

Definitions:

Major Depression

A mental disorder characterized by a persistent and severe low mood accompanied by low self-esteem and loss of interest or pleasure in normally enjoyable activities.

Anorexia Nervosa

An eating disorder characterized by a low weight, fear of gaining weight, and a strong desire to be thin, leading to food restriction.

Elaborate Meals

Complex and often finely prepared dishes or series of dishes served in a high degree of detail and sophistication.

Emaciated

The physical condition of someone being abnormally thin or weak, often due to severe malnourishment or illness.