13. What do the following data taken from a comparative balance sheet indicate about the...

13.     What do the following data taken from a comparative balance sheet indicate about the company’s ability to bor- row additional funds on a long-term basis in the current year as compared to the preceding year?

 Current Year Preceding Year Fixed  assets (net) $175,000$170,000

Total long-term liabilities                          70,000                                85,000

14.     What does a decrease in the ratio of liabilities to stock- holders’ equity indicate about the margin of safety for a firm’s creditors and the ability of the firm to withstand adverse business conditions?