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

question 178

Multiple Choice

Given the following data:
$\begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\\text { Total liabilities } & \$ 128,250 & \$ 120,000 \\\text { Total stockholders' equity } & 95,000 & 80,000\end{array}$
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

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