194.Company G has a ratio of liabilities to stockholders’ equity of 0.12 and 0.28 for Year 1 and Year 2, respectively. Incontrast, Company M has a ratio of liabilities to stockholders’ equity of 1.13...

194.Company G has a ratio of liabilities to stockholders’ equity of 0.12 and 0.28 for Year 1 and Year 2, respectively. Incontrast, Company M has a ratio of liabilities to stockholders’ equity of 1.13 and 1.29 for the same period.

REQUIRED:

Based on this information, which company's creditors are more at risk and why? Should the creditors of eithercompany fear the risk of nonpayment?

195.The following data were taken from Miller Company’s balance sheet:

a.Compute the ratio of liabilities to owner’s equity.

b.Has the creditors’ risk increased or decreased from December 31, Year 1, to December 31, Year 2?

Match the following business types with each business listed below.Each may be used more than once.

a.Service firm

b.Manufacturing firm

c.Merchandising firm