8 9 A 5 East 5 West 7 Company B The following information was drawn from the balance sheets of two companies. Assets $200,000 $600,000 P D E Liabilities $84,000 $168,000 Debt to Assets Ratio % % F + Equity $116,000 $432,000 Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. 10 11 (Use cell references from the given information to complete this question.) 12 I 13 Company 14 East 15 West 16 17 b. Compare the two ratios computed in requirement a to identify which company has the higher level of financial risk.

The following information was drawn from the balance sheets of two companies. Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. (Use cell references from the given information to complete this question.) The following information was drawn from the balance sheets of two companies. Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. (Use cell references from the given information to complete this question.) b. Compare the two ratios computed in requirement a to identify which company has the higher level of financial risk