· Period 1 Balance Sheet (Dec 31, 2022):

• Current Assets: $150,000
• Current Liabilities: $80,000

· Period 2 Balance Sheet (Dec 31, 2023):

• Current Assets: $180,000
• Current Liabilities: $100,000

·Compute Debt Service Coverage Ratio (DSCR): Requirements:

• Using data from a balance sheet and income statement, calculate the debt service coverage ratio (DSCR).
• Interpret the DSCR and discuss its relevance in assessing a company's ability to service its debt obligations.
• Explain how lenders and investors use the DSCR in evaluating credit risk and investment opportunities.