Analysis Questions: 1. Calculate the following ratios for the two corporations. a. Debt Ratio b. Debt-to-Equity Ratio 2. Using the ratios calculated in Question #1, which ratio will be preferred by a. Creditors of the corporation. b. Owners of the corporation Explain why for each answer $144,000 441.000 585.000 Land Balance Sheet December 31, 2003 Assets: Liabilities: Cash $15,000 Notes payable 120.000 Bonds payable Building 215.000 Total liabilities Office equipment 28,000 Stockholders' equity: Tour trolleys 149.000 Common stock Charter boat 205,000 Additional paid-in capital-common Total stockholders' equity Total liabilities and stockholders' Total assets $732,000 equity Required: a. Calculate the debt ratio for the company. b. Calculate the debt-to-equity ratio for the company. c. What do the ratios in parts a and b tell you about the company? $ 57,000 90.000 147,000 $732,000 LO 8: FINANCIAL RATIO CALCULATIONS CORPORATION 3-84. The balance sheet below was compiled for South Beach Dive Center, Inc. South Beach Dive Center, Inc. Balance Sheet November 30, 2003 Assets: Liabilities: Cash $11,000 Accounts payable Merchandise inventory 96,000 Notes payable Computer system 6,000 Total liabilities Office equipment 8,000 Stockholders' equity: Dive boat 188.000 Common stock Additional paid-in capital-common Total stockholders' equity Total liabilities and stockholders Total assets $309,000 equity $ 62,000 77,000 139,000 $68.000 102,000 170,000 $309.000