The classified balance sheet for Tipke, Inc. as of December 31, 2014, is presented next.

Requirements
1. Calculate Tipke€™s debt ratio as of December 31, 2014.
2. What percentage of Tipke€™s assets belongs to the shareholders?
3. Would you be willing to extend credit to Tipke, Inc.? Why or why not?

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Tipke, Inc. Balance Sheet December 31, 2014 Current Assets: Cash Accounts Receivable Supplies Prepaid Rent Total Current Assets Current Liabilities: 17,500 Accounts Payable 5,400 Salary Payable $ 1,100 2,400 650 10,000 14.150 400 Unearned Service Revenue 3,600 Note Payable 26,900 Total Current Liabilities Long-Term Debt Fixed Assets Land Equipment Less Accumulated 10,000 140,000 55,000 Mortgage Note Payable Bonds Payable Total Long-Term Debt 150,000 38,000 Depreciation, Equipment8,000 30,000 Building Less Accumulated Shareholders' Equity: Common Shares Retained Earnings 225,000 20,000 122,750 142,750 Depreciation, Building 30,000 195,000 Total Fixed Assets Total Assets Total Shareholders' Equity 280,000 Total Liabilities and 306900Shareholders' Equity $306,900