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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 | $ | 2,348,000 | $ | 1,217,000 | ||
Total liabilities | 811,000 | 505,000 | ||||
Total equity | 1,537,000 | 712,000 | ||||
Required: 1. Compute the debt-to-equity ratios for both companies. 2. Which company has the riskier financing structure?
Pulaski Company $2,348,000 Scott Company $1,217,000 505,000 712,000 otal assets Total liabilities Total equity 811,000 1,537,000 equired: Compute the debt-to-equity ratios for both companies. Which company has the riskier financing structure? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the debt-to-equity ratios for both companies. Choose Numerator: Choose Denominator: Debt-to-Equity Rati Pulaski Company Scott Company SRaquired 1. Required 2 >
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