a. Calculate the debt to equity ratio for 2019 and 2020, for the following three separate companies.

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b. Comment on whether the ratio for each has improved or weakened from a risk perspective.

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Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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Question Posted: Dec 18, 2019 06:16 AM

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a. Calculate the debt to equity ratio for 2019 and 2020, for the following three separate companies.

Question:

Outdoor Adventure Company Fab Form Industries 2020 Recycle Resources 2019 2019 2020 2019 2020 2,306,225 1,246,608 Total Debt (A) 2,522,364 1,293,520 4,141,368 2,556,400 4,437,345 2,689,300 1,137,720 1,021,295 928,450 Total Equity (B) 875,169

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Fundamental Accounting Principles Volume II

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