The following data were taken from Miller Company’s balance…
The following data were taken from Miller Company’s balance sheet: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total stockholders’ equity 75,000 60,000 (a) Compute the ratio of liabilities to stockholders’ equity. Round answers to two decimal places. (b) Has the creditors’ risk increased or decreased from December 31, Year 1, to December 31, Year 2?