Question: Debt Ratio, Debt-to-Equity Ratio Busch Company's balance sheet shows total liabilities of $510,900, total equity of $126,000, and total assets of $636,900.
Required: 1. Calculate the debt ratio.
2. Calculate the debt-to-equity ratio.
3. Conceptual Connection: Based on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Busch's financing decisions.