Given the Following Data

question 154

Essay

Given the following data:
Dec. 31, 2012 Dec. 31, 2011
Total liabilities $118,750 $104,000
Total stockholders' equity 95,000 80,000
a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2011, to December 31, 2012?

---

Definitions:

Executive Director

A senior management position in an organization, responsible for overseeing the administration, programs, and strategic plan of the company or organization.

Karen Horney

A German psychoanalyst known for her theories on neurosis, personality, and psychoanalytical social theory.

Collectivist Culture

A societal structure where individuals prioritize the needs and goals of the group over personal desires or ambitions, often valuing harmony and interdependence.

Five-Factor Model

A theory that identifies five key dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.