15-1. Minetello Construction needs a piece of equipment that costs $40,000. Minetello either can lease the equipment or borrow $40,000 from a local bank and buy the equipment. If the equipment is leased, the lease would not have to be capitalized. Minetello's balance sheet prior to the acquisition of the equipment is as follows:

Current assets	$15,000	Debt	$20,000
Net fixed assets	65,000	Equity	60,000
Total Assets	80,000	Total claims	80,000

(a) (1)What is Minetello's debt ratio at present? (2)What would be the company's debt ratio if it purchased the equipment? (3)What would be the debt ratio if the equipment were leased? (b) Would the company's financial risk be different under the leasing and purchasing alternatives?