I would like for someone to help me understand or confirm my opinion on the balance sheet below.

What conclusions about how the business is financed can be drawn from the composition of the organization's capital?

Based upon the defined capital structure, assess the risks facing the entrepreneur responsible for this business because of the capital structure.

What can one conclude about the business's financing based on the composition of the organization's capital?

I also want to make sure my computation is correct, so could you compute the debt to equity ratio as follows:

Add (current portion of long-term debt) + (long-term debt net of current portion) to obtain long-term debt.

Debt-to-equity ratio = Long-term debt/total shareholders' equity.

Use the computed ratio to respond to the above questions.

Assets

Current Assets

Cash and Cash Equivalents. $189,861

Accounts Receivable. $1,317,566

Notes Receivable. $0

Inventories. $668,407

Prepaid Expenses. $19,342

Deferred Income Taxes. $34,000

Total Current Assets. $2,229,176

Property and Equipment. $2,025,122

Other Assets$322,156

Note Receivable. $12,949

Total Asests $4,589,403

Liabilities and Shareholders' Equity

Current Liabilities

Notes Payable $0

Current Portion LT Debt. $120,104

Accounts Payable $502,303

Accrued Expenses $303,600

Income Tax Payable $23,000

Total Current Liabilities $949,007

LT Debt Net of Current Pottion $1,143,796

Deferred Income Tax $356,000

Total Liabilities $2,448,803

Shareholders' Equity

Common stock, no par value,1,000,000 shares authorized800 shares issued $80,000

Retained Earnings $2,660,600

Total Shareholders Equity $2,140,600

Total Liabilities and Shareholders' Equity $4,589,403

Balance Sh Assets 2020 Current Assets Cash and Cash Equiva;ents Accounts Receivable Notes Receivable Inventories Prepaid Expenses Deferred Income Taxes Total Current Assets $189,861 $1,317,566 $0 $668,407 $19,342 $34,000 $2,229,176 Property and Equipment Other Assets Note Receivable Total Asests $2,025,122 $322,156 $12,949 $4,589,403 Liabilities and Shareholders' Equity Current Liabilities Notes Payable Current Portion LT Debt Accounts Payable Accrued Expenses Income Tax Payable Total Current Liabilities $0 $120,104 $502,303 $303,600 $23,000 $949,007 LT Debt Net of Current Pottion Deferred Income Tax Total Liabilities $1,143,796 $356,000 $2,448,803 Shareholders' Equity Common stock, no par value, 1,000,000 shares authorized 800 shates issued Retained Earnings Total Shareholders Equity Total Liabilities and Shareholders' Equity $80,000 $2,660,600 $2,140,600 $4,589,403 Balance Sh Assets 2020 Current Assets Cash and Cash Equiva;ents Accounts Receivable Notes Receivable Inventories Prepaid Expenses Deferred Income Taxes Total Current Assets $189,861 $1,317,566 $0 $668,407 $19,342 $34,000 $2,229,176 Property and Equipment Other Assets Note Receivable Total Asests $2,025,122 $322,156 $12,949 $4,589,403 Liabilities and Shareholders' Equity Current Liabilities Notes Payable Current Portion LT Debt Accounts Payable Accrued Expenses Income Tax Payable Total Current Liabilities $0 $120,104 $502,303 $303,600 $23,000 $949,007 LT Debt Net of Current Pottion Deferred Income Tax Total Liabilities $1,143,796 $356,000 $2,448,803 Shareholders' Equity Common stock, no par value, 1,000,000 shares authorized 800 shates issued Retained Earnings Total Shareholders Equity Total Liabilities and Shareholders' Equity $80,000 $2,660,600 $2,140,600 $4,589,403