189.Given the following data:
Dec. 31, Year 2Dec. 31, Year 1
Total liabilities$128,250$120,000
Total stockholders' equity95,00080,000
Compute the ratio of liabilities to stockholders' equity for each year. Round to two decimal places.
a. 1.50 and 1.07, respectivelyb. 1.35 and 1.50, respectively
c. 1.07 and 1.19, respectivelyd. 1.19 and 1.35, respectively
190.Schultz Tax Services, a tax preparation business, had the following transactions during the month of June:
1.Received cash for providing accounting services, $3,000
2.Billed customers on account for providing services, $7,000
3.Paid advertising expense, $800
4.Received cash from customers on account, $3,800
5.Paid shareholder dividends, $1,500
6.Received telephone bill, $220
7.Paid telephone bill, $220
Based on the information given above, calculate the balance of cash at June 30. Use the following reconciliation.
Cash, June 1$25,000
Plus cash receipts for June____________
Minus cash payments for June
Cash, June 30____________
191.Given the following data:
Dec. 31, Year 2Dec. 31, Year 1
Total liabilities$128,250$120,000Total 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, Year 1, to December