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

Multiple Choice

Given the following data: $\begin{array}{lrr}&\text { Dec. } 31 \text {, Year } 2&\text { Dec. } 31 \text {, Year } 1\\\text { Total liabilities } & \$ 128,250 & \$ 120,000 \\\text { Total stockholders' equity } & 95,000 & 80,000\end{array}$
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