The following information was drawn from the Year 8 balance sheets of two companies: = + Company Morris Reeves Assets 500,000 800,000 Liabilities 125,000 360,000 Common Stock 300,000 200,000 + Retained Earnings 75,000 240,000 During Year 8, Morris' net income was $33,750, while Reeves' net income was $61,600. Dok 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. c. Compute the return-on-equity ratio to measure the level of financial risk of both companies. d. Compare the two ratios computed in Requirement a to identify which company is performing better. f. Identify the company that is using financial leverage to a greater extent. Fences Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required F Compute the debt-to-assets ratio to measure the level of financial risk of both companies Company Debt to Assets Ratio Morris Reeves Required Required B > The following information was drawn from the Year 8 balance sheets of two companies: Company Morris Reeves Morris Assets 500,000 800,000 - - - Liabilities 125,000 360,000 + + Common Stock 300,000 200,000 + Retained Earnings + 75,000 240,000 points During Year 8. Morris' net income was $33,750, while Reeves' net income was $61,600. Book 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. c. Compute the return-on-equity ratio to measure the level of financial risk of both companies d. Compare the two ratios computed in Requirement a to identify which company is performing better. f. Identify the company that is using financial leverage to a greater extent. References Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required F Compare the two ratios computed in Requirement a to identify which company has the higher level of financial risk. Which company has the higher level of financial risk? (Required A Required ) The following information was drawn from the Year 8 balance sheets of two companies: - + Company Morris Reeves Assets 500,000 800,000 Liabilities 125,000 360,000 Common Stock 300,000 200,000 + Retained Earnings 75,000 240,000 - During Year 8, Morris' net income was $33,750, while Reeves' net income was $61,600. eBook 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. c. Compute the return-on-equity ratio to measure the level of financial risk of both companies. d. Compare the two ratios computed in Requirement a to identify which company is performing better. f. Identify the company that is using financial leverage to a greater extent. eferences Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required F Compute the return-on-equity ratio to measure the level of financial risk of both companies. Company Return on Equity Morris Reeves The following information was drawn from the Year 8 balance sheets of two companies: Corpany Morris Reeves Assets 500,000 800,000 Liabilities 125,000 360,000 Common Stock 300,000 200.000 - + + Retained Earnings 75,000 + 240,000 - During Year 8, Morris' net income was $33,750, while Reeves' net income was $61,600. 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. c. Compute the return-on-equity ratio to measure the level of financial risk of both companies. d. Compare the two ratios computed in Requirement a to identify which company is performing better 1. Identify the company that is using financial leverage to a greater extent. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required Required Compare the two ratios computed in Requirement a to identify which company is performing better. Which company is performing better? ( Required Required >
