Earlier in the year Wyland obtained a bank loan of $$72,000$ cash for the $$rm$.$ One of the provisions of the loan is that the year$-$end debt$-$to$-$equity ratio $($ratio of total liabilities to total equity$)$ cannot exceed $1\mathrm{.}0.$ Based on the above balance sheet, the ratio at the end of the year is $1\mathrm{.}08.$ Wyland is concerned about being in violation of the loan agreement and requests assistance in reviewing the situation. Wyland believes that she might have overlooked some items at year$-$end. Discussions with Wyland reveal the following.

$1.$ On January $1$ the $$rm paid a $$10,800$ insurance premium for $2$ years of coverage; the amount in Prepaid Insurance has not yet been adjusted.

$2.$ Depreciation on the equipment should be $10\%$ of cost per year; the company inadvertently recorded $15\%$ for the year.

$3.$ Interest on the bank loan has been paid through the end of the year.

$4.$ The $$rm concluded a major consulting engagement in December, doing a plant layout analysis for a new factory. The $$14,400$ fee has not been billed or recorded in the accounts.

$5.$ On December $1,$ the $$rm received a $$27,120$ advance payment from Croy Corporation for consulting services to be rendered over a $2-$month period. This payment was credited to the Contract Liabilities account. One$-$half of this fee was earned by December $31.$

$6.$ Supplies costing $$11,520$ were available on December $31$; the company has made no entry in the accounts.

Required

a$.$ What portion of the company is $$nanced by debt versus equity $($called the debt$-$to$-$equity ratio and de$$ned in Chapter $1)$ at December $31?$

$$ Note: Use negative signs with your answers, when appropriate.

$$ Note: Leave your answer blank $($zero$)$ if a part of the accounting equation is not affected.

$$ Note: Round your answers to the nearest dollar.