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The following information was drawn from the balance sheets of two companies: 10 Company East West Assets 201,000 597,000 Liabilities 81,000 174,000 + Equity 120,000
The following information was drawn from the balance sheets of two companies: 10 Company East West Assets 201,000 597,000 Liabilities 81,000 174,000 + Equity 120,000 423,000 1.17 points Required a. Compute the debt-to-assets ratio to measure the level of financial risk of both companies. b. Compare the two ratios computed in requirement a to identify which company has the higher level of fi eBook Complete this question by entering your answers in the tabs below. Hint Required A Required B References Compute the debt-to-assets ratio to measure the level of financial risk of both companies. (Round your answe place.) Company East Debt to Assets Ratio % % West Required A Required B >
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