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

Question 88

Multiple Choice

Given the following data:  Dec. 31,2014 Dec. 31,2013  Total liabilities $128,250$120,000 Total stockholders’ equity 95,00080,000\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

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