In 2020, We “B” Toys had total liabilities of $4,515 million and total assets of $8,003 million. In 2019, their total liabilities were $4,673 million and total assets were $8,353 million. Which of the following statements is true? Group of answer choices A)The company had a decrease in their debt to equity ratio from 2019 to 2020. b)The company had more creditor financing versus stockholder equity financing in 2020. c)Their debt to equity ratio in 2020 means they have less than half their financing provided by creditors. d)All of the above are true. e)None of the above is true.

In 2020, We “B” Toys had total liabilities of $4,515 million and total assets of $8,003 million. In 2019, their total liabilities were $4,673 million and total assets were $8,353 million. Which of the following statements is true? Group of answer choices A)The company had a decrease in their debt to equity ratio from 2019 to 2020. b)The company had more creditor financing versus stockholder equity financing in 2020. c)Their debt to equity ratio in 2020 means they have less than half their financing provided by creditors. d)All of the above are true. e)None of the above is true.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2MC

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