Use the financial statements for Rhythmic Dance Studio to calculate solvency ratios.

1: Debt ratio for 2026:  %

2: Debt ratio for 2027:  %

3: Equity ratio for 2026:  %

4: Equity ratio for 2027:  %

5: Debt-to-equity ratio for 2026:  

6: Debt-to-equity ratio for 2027:

Transcribed Image Text:

Rhythmic Dance Studio Income Statement For the Year Ended December 31, 2026 Dollar Amount Percentage Revenues Service Revenue $ 194,000 100.00% Total Revenues 194,000 100.00% Expenses: Salaries Expense 82,400 42.47% Rent Expense 32,275 16.64% Supplies Expense 8,370 4.31% Telephone Expense 7,000 3.61% Utilities Expense 6,200 3.20% Depreciation Expense 4,200 2.16% Postage Expense 2,700 1.39% Miscellaneous Expense 8,500 4.38% Total Expenses 151,645 78.17% Net Income $ 42,355 21.83% Rhythmic Dance Studio Income Statement For the Year Ended December 31, 2026 Dollar Amount Percentage Revenues Service Revenue $ 194,000 100.00% Total Revenues 194,000 100.00% Expenses: Salaries Expense 82,400 42.47% Rent Expense 32,275 16.64% Supplies Expense 8,370 4.31% Telephone Expense 7,000 3.61% Utilities Expense 6,200 3.20% Depreciation Expense 4,200 2.16% Postage Expense 2,700 1.39% Miscellaneous Expense 8,500 4.38% Total Expenses 151,645 78.17% Net Income $ 42,355 21.83%