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Exercise 2-29 (Algo) Calculating and interpreting the debt ratio LO A2 Company DreamWorks Expenses Total Assets. $ 27,000 $ 130,000 Net Income $ 53,000

Exercise 2-29 (Algo) Calculating and interpreting the debt ratio LO A2 Company DreamWorks Expenses Total Assets. $ 27,000 $ 130,000 Net Income $ 53,000 Total Liabilities Pixar Universal 118,000 29,000 167,000 78,000 $ 91,000 150,400 102,000 8,400 51,680 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Company Debt Ratio DreamWorks Pixar Universal b. Which company has the most risk from financial leverage? Largest financial leverage

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