Homework Problem 3-34A Using ratio analysis to make comparisons between companies LO 3 The following information is available for the Maine Company and the lowa Company: Total assets Total liabilities Stockholders' equity Net income Maine Co. $ 695,000 417,000 278,000 41,000 Iowa Co. $ 151,000 106,000 45,000 10,000 Required a. For each company, compute the debt-to-assets ratio and the return-on-equity ratio. (Round your answe decimal place.) Maine lowa Debt to assets ratio Return on equity ratio % % % % b. Determine what percentage of each company's assets were financed by the owners. (Round your a decimal place.) b. Determine what percentage of each company's assets were financed by the owners. (Round decimal place.) Maine % lowa % of financial risk? c. Which company has the greatest level of financial risk? Maine Company Olowa Company d. Based on profitability alone, which company performed better? Maine Company lowa Company e. Do the above ratios support the concept of financial leverage? Yes No