Problem 14-10A Applying the debt-to-equity ratio A3 At the end of the current year, the following information is available for both Kumar Company and Asher Company Kumar Company Asher Company Total assets Total liabilities Total equity $2,254,500 904,500 1,350,000 $1,123.500 598,500 525,000 Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your results and discuss the riskiness of each company's financing structure