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The following information was drawn from the balance sheets of two companies. Company Cookie Assets Corp 192,000 Cupcake 593,000 Inc Liabilities + 91,000 Equity
The following information was drawn from the balance sheets of two companies. Company Cookie Assets Corp 192,000 Cupcake 593,000 Inc Liabilities + 91,000 Equity 101,000 160,000 433,000 Debt to Asset Ratio Total Debt/Total Assets 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 financial risk. Complete this question by entering your answers in the tabs below. Required A Required B Compute the debt-to-assets ratio to measure the level of financial risk of both companies. (Round your answers to 1 decimal place.) Company Cookie Corp Debt to Assets Ratio % Cupcake Inc
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