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The following information is available for both Pulaski Company and Scott Company at the current year-end. Pulaski Company Scott Company Total assets $ 2,304,000 $

The following information is available for both Pulaski Company and Scott Company at the current year-end.

Pulaski Company Scott Company
Total assets $ 2,304,000 $ 1,173,000
Total liabilities 855,000 549,000
Total equity 1,449,000 624,000

Required: 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the riskier financing structure?

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