G. Is this company using financial leverage to its advantage? How can you tell?

2. Based on the balance sheet below, please answer the questions below. Balance Sheet (Year ended June 30, 2019): de la Vega Corporation Assets Liabilities Cash 1,545,000 Accounts Payable 70,000 Available-for-sale Investments - McCulley Corp. 500,000 Accounts Receivable 110,000 Accrued Expenses 60,000 Inventory 722,000 Current Portion - Long-term debt 665,000 Prepaid Expenses 10,000 Long-term debt 1,825,000 Property, plant and equipment 1,250,000 Total Liabilities 2,620,000 Accumulated Depreciation 20,000 Property, plant and equip. (Net) 1,230,000 Common stock 700,000 Paid-in Capital in Excess of Par 300,000 Retained earnings 497,000 Shareholder's Equity 1,497,000 Total Assets 4,117,000 Total Liab. & Owner's Equity 4,117,000