The following information is available for Mods Media Ltd.

	2021			2020
Total assets Total liabilities Share capital Retained earnings	$	1 630 00 900 000 365 000 365 000		$	1 725 00 850 000 480 000 395 000

Required i. Calculate the following ratios for 2020 and 2021:

1. debt ratio 2. equity ratio 3. capitalisation ratio.

ii. Is having liability always bad for the firm capital structure? Explain your answer.

iii. What do these ratios indicate about the companys gearing? Is there any concern? Explain your answer.