Question
At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets
At the end of the current year, the following information is available for both Pulaski Company and Scott Company.
Pulaski Company Scott Company
Total assets $2,293,000 $1,162,000
Total liabilities 866,000 560,000
Total equity 1,427,000 602,000
Required:
1.Compute the debt-to-equity ratios for both companies.
2.Which company has the riskier financing structure?
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
