Exercise 10-15 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $580,000 loan. It presently has total liabilities of $180,000 and total assets of $660,000. 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $580,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky? Choose Numerator: 1 Choose Denominator: 1 Debt-to-Equity Ratio 1. (a) 1 0 1. (b) 1 0 2. If Montclair borrows the funds, does its financing structure become more or less risky? Problem 10-5A (Algo) Installment notes LO C1 On November 1, 2020, Norwood borrows $580,000 cash from a bank by signing a five-year installment note bearing 5% interest. The note requires equal payments of $133,965 each year on October 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2020 (the end of its annual reporting period). (b) The first annual payment on the note. Complete this question by entering your answers in the tabs below. Req 1 Req 2A and 2B Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) Period Ending Date Beginning Balance Debit Interest Expense + Debit Notes Payable = Credit Cash Ending Balance 10/31/2021 10/31/2022 10/31/2023 10/31/2024 10/31/2025