The following information relates to three companies that operate similar businesses:

For each company, calculate the debt ratio, equity ratio, and pledged assets to secured liabilities. Identify which company has the least favourable performance in each ratio andwhy.

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Company C $ 5,000 565,000 190,000 985,000 180,000 Company A Company B S 65,000 654,500 590,000 1,850,000 970,000 250,000 640,000 335,000 Accounts payable.. Long-term notes payable secured by mortgages on plant and equipment.. 590,000 700,000 55,000 1,500,000 500,000 189,500 215,000 450,000 900,000