The classified balance sheet forTipke, Inc., as of December 31, 2010, is presented next.

Requirements 1. Calculate Tipke’s debt ratio as of December 31, 2010.
2. What percentage of Tipke’s assets belong to the stockholders?
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, 2010 Current Assets: Current Liabilities: Cash $ 17,500 Accounts Payable Accounts Receivable 5,400 Salary Payable Supplies Prepaid Rent 400 Unearned Service Revenue 3,600 Note Payable Total Current Assets 26,900 Total Current Liabilities $ 1,100 2,400 650 10,000 14,150 Fixed Assets: Long-Term Debt: Land 55,000 Mortgage Note Payable 10,000 Equipment 38,000 Bonds Payable 140,000 Less Accumulated Total Long-Term Debt 150,000 Depreciation, Equipment 8,000 30,000 Stockholders' Equity: Building 225,000 Common Stock 20,000 Less Accumulated Retained Earnings 122,750 Depreciation, Building 30,000 195,000 Total Stockholders' Equity 142,750 Total Fixed Assets 280,000 Total Liabilities and Total Assets $306,900 Stockholders' Equity $306,900