At the end of 2013 the following information is available for the Boise Company and the Tucson Company:

Required
a. For each company, compute the debt to assets ratio and the return on equity ratio.
b. Determine what percentage of each company's assets were financed by the owners.
c. Which company has the greatest level of financial risk?
d. Based on profitability alone, which company performed better?
e. Do the above ratios support the concept of financial leverage?Explain.

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Boise Co. Total assets Total liabilities Stockholders' equity Net income Tucson Co. s127452000 301,000 $127,000 93,000 34,000 8,000 45,000