LEVERAGE What is leverage? Use the following information to calculate the leverage measure known as the "Debt Ratio" for each company. Company A Company B Company C Total Debts $500,000 $150,000 $10,000 Total Assets $1,000,000 $100,000 $50,000 Debt Ratio = Total Debts / Total Assets Which company has the more favorable Debt Ratio, and why? Which financial statement(s) would you need in order to find this information on your own? (Circle all that apply) Balance Sheet Income Statement Cash Flow Statement