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-Refer to King Cotton Company

Question 131

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  -Refer to King Cotton Company. Which one of the liabilities shown in the balance sheets is used in the calculation of the debt-to-equity ratio? If we can assume that the stockholders' equity total remained relatively constant for the two years, how would the ratio change (increase/decrease)from 2012 to 2013? What would this say about the company's financial position?
-Refer to King Cotton Company. Which one of the liabilities shown in the balance sheets is used in the calculation of the debt-to-equity ratio? If we can assume that the stockholders' equity total remained relatively constant for the two years, how would the ratio change (increase/decrease)from 2012 to 2013? What would this say about the company's financial position?

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All liabilities are used in the calculat...

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