debt ratio

Project Description:

exercise 16-36 debt ratio, debt-to-equity ratio
busch company’s balance sheet shows total liabilities of $510,900, total equity of $126,000, and
total assets of $636,900.
note: round answers to two decimal places.
1. calculate the debt ratio.
2. calculate the debt-to-equity ratio.
3. conceptual connection based on the ratios calculated in requirements 1 and 2,
comment on the riskiness of busch’s financing decisions.

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