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hello need help with according homework Exercise 16-36Debt Ratio, Debt-to-Equity Ratio Busch Companys balance sheet shows total liabilities of $510,900, total equity of $126,000, and

hello need help with according homework

Exercise 16-36Debt Ratio, Debt-to-Equity Ratio

Busch Companys balance sheet shows total liabilities of $510,900, total equity of $126,000, and total assets of $636,900.

Required:

Note:Round answers to two decimal places.

  • 1.Calculate the debt ratio.
  • 2.Calculate the debt-to-equity ratio.
  • 3.CONCEPTUAL CONNECTIONBased on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Buschs financing decisions.

Use the following information for Exercises 16-37 through 16-39:

Juroe Company provided the following income statement for last year:

Sales

$11,300,000

Cost of goods sold

3,000,000

Gross margin

$ 8,300,000

Operating expenses

3,800,000

Operating income

$ 4,500,000

Interest expense

1,000,000

Income before taxes

$ 3,500,000

Income taxes

1,400,000

Net income

$ 2,100,000

Juroes balance sheet as of December 31 last year showed total liabilities of $10,250,000, total equity of $6,150,000, and total assets of $16,400,000.

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