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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.

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  • Category:- Accounting Basics
  • Reference No.:- M92507274
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