Rent-A-Centre
Selected Data from the Financial Statements Are Provided in the Following

Rent-a-Centre
Selected data from the financial statements are provided in the following table:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Current assets } & \$ 12,000 & \$ 6,000 \\\text { Long-term assets } & 14,000 & 8,000 \\\text { Current liabilities } & 4,000 & 6,000 \\\text { Long-term liabilities } & 14,000 & 0 \\\text { Shareholders' equity } & 8,000 & 8,000 \\\text { Net sales } & 19,000 & 18,200 \\\text { Net income } & 2,000 & 1,000\end{array}$
-Refer to the figure Rent-a-Centre.Which of the following happened to the debt management ratios between Year 1 and Year 2?

A) The debt-to-equity and debt-to-total-assets ratios both increased.
B) The debt-to-equity and debt-to-total-assets ratios both decreased.
C) The debt-to-equity and long-term debt-to-equity ratios both decreased.
D) The debt-to-equity ratio decreased and the debt-to-total-assets ratios increased.