Use the balance sheets from Suzanne's Hotels to compute the debt-to-equity ratio for 2011 and 2010. Suppose you calculated a debt ratio using debt plus equity as the denominator. Which ratiolong dashdebt-to-equity or debt-to-debt plus equitylong dashseems easiest to interpret? As an investor, do you view the "trend" in the debt-to-equity ratio as favorable or unfavorable? Why?

Suzanne's Hotels, Inc. Balance Sheets December 31, 2011 December 31, 2010 Current assets Cash Accounts receivable, net Inventory Prepaid expenses $98,000 110,000 170,000 18,000 396,000 184,000 $580,000 $90,000 116,000 160,000 16,000 382,000 160,000 $542,000 Total current assets Equipment, net Total assets Total current liabilities Long-term liabilities Total liabilities Common stockholders' equity Retained earnings Total liabilities and stockholder's equity $206,000 119,000 325,000 90,000 165,000 $580,000 $223,000 117,000 340,000 90,000 112,000 $542,000 Use the balance sheets from Suzanne's Hotels to compute the debt-to-equity ratio for 2011 and 2010. Suppose you calculated a debt ratio using debt plus equity as the denominator. Which ratio-debt-to-equity or debt-to-debt plus equity-seems easiest to interpret? As an investor, do you view the "trend" in the debt-to-equity ratio as favorable or unfavorable? Why? EEB (Click the icon to view the balance sheets.) Compute the debt-to-equity ratio for 2011 and 2010 for Suzanne's Hotel. (Round your answer to two decimal places.) -Debt-to-equity ratioYear 2011 Compute the debt-to-debt-plus equity ratio for 2011 and 2010 for Suzanne's Hotel. (Round your answer to two decimal places.) Debt-to-debt plus equity ratio Yean 2011 2010 - As an investor, do you view the "trend" in the debt-to-equity ratio as favorable or unfavorable? Why? The "trend" here suggests that the company is in a equity and is therefore arisky investment. Vpon in 2011 than in 2010 so the trend is V The company hasdebt relative to Choose from any list or enter any number in the input fields and then continue to the next question Accounts payable Cash Common stock Cost of goods sold Current assets Current liabilities Equipment, net Interest expense Long-term liabilities Net income Retained earnings Sales (credit) Total liabilities Total stockholders' equity Total stockholders' equity and liablities