Balance Sheet as of December 31, 2023:

Assets	Amount (USD)	Liabilities and Equity	Amount (USD)
Cash and Cash Equivalents	$50,000	Accounts Payable	$15,000
Accounts Receivable	$30,000	Notes Payable	$10,000
Inventory	$40,000	Accrued Expenses	$5,000
Prepaid Expenses	$5,000	Total Current Liabilities	$30,000
Property, Plant, Equipment	$100,000	Long-Term Debt	$50,000
Investments	$20,000	Total Liabilities	$80,000
Other Assets	$10,000
Total Assets	$255,000

Equity	Amount (USD)
Common Stock	$60,000
Retained Earnings	$115,000
Total Equity	$175,000
Total Liabilities and Equity	$255,000

·Evaluate Debt-to-Equity Ratio: Requirements:

• Using a balance sheet with specific figures for total liabilities and total equity, compute the debt-to-equity ratio.
• Interpret the debt-to-equity ratio in terms of a company's financial leverage and risk.
• Discuss how changes in the debt-to-equity ratio over time can indicate shifts in a company's capital structure.