Question: Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Calculate the debt to equity ratio for the

Financial information for Buckle is presented in Appendix B at the end of the book.


Required:

1. Calculate the debt to equity ratio for the past two years. Did the ratio increase or decrease in the more recent year?

2. Calculate the return on assets for the most recent year. Does the return on assets exceed the cost of borrowing of approximately 4%?

3. Review the balance sheet and note E to the financial statements. Based on this information, how would you rate the bankruptcy risk of Buckle?

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