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In 2019, Toys2me Ltd. had total liabilities of $4,275 million and total assets of $7,899 million....

In 2019, Toys2me Ltd. had total liabilities of $4,275 million and total assets of $7,899 million. In 2020, their total liabilities were $3,535 million and total assets were $7,963 million. Which of the following statements is true?

1)

 The debt-to-equity ratio decreased from 2019 to 2020.

2)

 Toys2me Ltd. had more debt financing than equity financing in 2020.

3)

 All of the responses above are true.

4)

 The debt-to-equity ratio in 2019 means that Toys2me has less than half of its financing provided by creditors.
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