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The following information was drawn from the balance sheets

The following information was drawn from the balance sheets of two companies:

193_264-B-A-D-E-F (107).png

Required:

a. Compute the debt to assets 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.

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Accounting Basics: The following information was drawn from the balance sheets

Reference No:- TGS01212984

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