The following information was drawn from the balance sheets of two companies.
tableCompanyAssets,Liabilities EquityEastWest
Required
a Compute the debttoassets ratio to measure the level of financial risk of both companies.
b Compare the two ratios computed in requirement a to identify which company has the higher level of financial risk.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the debttoassets ratio to measure the level of financial risk of both companies. Round your answers to decimal place.
tableCompanytableDebt to AssetsRatioEastWestvdots,
