2. The following data were taken from Stanton Company's balance sheet:
Dec. 31, Year 2 Dec. 31, Year 1
Total liabilities
Total stockholders' equity
$110,000
90,000
What are the ratios of liabilities to stockholders' equity for Year 2 and Year 1?
a. 1.22, 1.62
b. 0.95, 0.72
c. 0.82, 0.61
d. 1.05, 1.38
$105,000
65,000
