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The following data were taken from Reynolds Company's balance sheet:
| Dec. 31, 2016 | Dec. 31, 2015 |
Total liabilities | $240,000 | $210,000 |
Total stockholders' equity | | $150,000 |
Which of the following best explains the change in creditors' risk from 2015 to 2016?
A. Not enough information is provided to answer this question.
B. Decreased risk.
C. Increased risk.
D. Risk did not change.
Dec. 31, 2016Dec. 31, 2015Total liabilities$240,000$210,000Total stockholders' equity$160,000$150,000
Answer & Explanation
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