Compute the debt-to-equity ratio for each of the following companies. Which company appears to have a riskier financing structure? Atlanta Company Spokane Company Total liabilities $429,000 $ 549,000 Total equity 572,000 1,830,000

Compute the debt-to-equity ratio for each of the following companies. Which company appears to have a riskier financing structure? Atlanta Company Spokane Company Total liabilities $429,000 $ 549,000 Total equity 572,000 1,830,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...

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Question

Compute the debt-to-equity ratio for each of the following companies. Which company appears to have a
riskier financing structure?
Atlanta Company Spokane Company
Total liabilities $429,000 $ 549,000
Total equity 572,000 1,830,000

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