Eco Homes, Inc., builds environmentally sensitive structures. The company's 2021 revenues totaled $2,760 million. At December 31,2021 , and 2020 , the company had, respectively, $647 million and $582 million in current assets. The company's balance sheets and income statements reported the following amounts: (Click the icon to view the amounts.) Read the requirements. Requirement 1. Describe each of Eco's long-term liabilities and state how the liability arose. Choose the correct liability from the list that best fits the description provided. The amount that the company expects to pay after the coming year; the result from the company borrowing money. The result of timing differences between GAAP and tax accounting methods (such as depreciation). Income tax expense might differ between GAAP book income ("Income Tax Expense") and taxable income according to Internal Revenue regulations ("Income Tax Payable"). The result from a company entering into long-term leases, such as for leasing property and equipment. The account includes both operating and finance leases that last longer than 12 months, and reflects the obligation for future lease payments. Requirement 2. What were the company's total assets at December 31, 2021? Evaluate the company's leverage and debt ratios at the end of 2020 and 2021. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Did the company improve, deteriorate, or remain about the same over the year? What were the company's total assets at December 31,2021 ? The total assets at December 31,2021 were million. Evaluate the company's leverage and debt ratio at the end of 2020 and 2021 . Did the company improve, deteriorate, or remain about the same over the year? Begin by computing the ratios. Determine the formula for the debt ratio. Then complete the formula and calculate the debt ratios at the end of 2020 and 2021. (Enter amounts in millions. Round your answers to two decimal places.) Now determine the formula for the leverage ratio. Then complete the formula and calculate the leverage ratios at the end of 2020 and 2021. (Enter amounts in millions. Round your answers to two decimal places.) Did the company improve, deteriorate, or remain about the same over the year? Both the leverage ratio and debt ratio in 2021. The company over the year. Data table Requirements 1. Describe each of Eco's long-term liabilities and state how the liability arose. 2. What were the company's total assets at December 31, 2021? Evaluate the company's leverage and debt ratios at the end of 2020 and 2021. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Did the company improve, deteriorate, or remain about the same over the year
