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Exercise 3-23A Using ratio analysis to assess financial risk The following information was drawn from the balance sheets of two companies: Company Assets LiabilitiesEqulty East
Exercise 3-23A Using ratio analysis to assess financial risk The following information was drawn from the balance sheets of two companies: Company Assets LiabilitiesEqulty East West 200,000 600,000 84,000 168,000 116,000 432,000 Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. b. Compare the two ratios computed in Requirement a to identify which company has the higher level of financial risk
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