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LO 5 1.5 points eBook 101 Hint References The following information was drawn from the balance sheets of two companies. Assets = Liabilities + 199,000
LO 5 1.5 points eBook 101 Hint References The following information was drawn from the balance sheets of two companies. Assets = Liabilities + 199,000 Equity 110,000 600,000 433,000 Company East West Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. b. Compare the two ratios computed in requirement a to identify which company has the higher level of financial risk. Complete this question by entering your answers in the tabs below. Required A Required B Compute the debt-to-assets ratio to measure the level of financial risk of both companies. (Round your answers to 1 decimal place.) Company 89,000 167,000 East West Debt to Assets Ratio % %
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