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

question 14

Multiple Choice

Given the following data:
$\begin{array}{lcc}Dec. ~31,2014&Dec. ~31,2013\\\hline\text { Total liabilities } & \$ 128,250 & \$ 120,000 \\\text { Total owner's equity } & 95,000 & 80,000\end{array}$
Compute the ratio of liabilities to owner's 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