Can you show me the step by step solutions for chapter 10, problem 10sp for financial accounting: information decisions 9th edition?

Santa Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2019, for Business Solutions follow.

Total Assets $120,268 Total Liabilities $875 Total Equity $119,393

Required:

1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to-equity ratio not exceed 0.8. As of March 31, 2019, what is the maximum amount that Business Solutions could borrow from this bank, round to nearest dollar?

Maximum Amount: ___________

2. Assume Business Solutions borrows the maximum amount allowed from the bank.

a) What percentage of assets would be financed by debt? Round your intermediate dollar values to the nearest whole number and finals answer to 1 decimal place.

Percentage of assets financed by debt: ___________