Question
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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