Problem 10-7A Applying the debt-to-equity ratio A2 The following information is available for both Pulaski Company and Scott Company at the current year-end. Pulaski Company Scott Company Total assets Total liabilities Total equity $860,000 360,000 $440,000 240,000 500,000 200,000 Required 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the riskier financing structure?