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Company Expenses Total Assets Net Income DreamWorks Pixar $ 27,000 $ 130,000 $ 53,000 Universal 118,000 29,000 167,000 102,000 78,000 8,400 a. Compute the debt ratio for each of the three companies. Note: Round your answers to 2 decimal places. Company Debt Ratio DreamWorks Pixar Universal b. Which company has the most risk from financial leverage? Largest financial leverage Total Liabilities $ 91,000 150,400 51,680

Company Expenses Total Assets Net Income DreamWorks Pixar $ 27,000 $ 130,000 $ 53,000 Universal 118,000 29,000 167,000 102,000 78,000 8,400 a. Compute the debt ratio for each of the three companies. Note: Round your answers to 2 decimal places. Company Debt Ratio DreamWorks Pixar Universal b. Which company has the most risk from financial leverage? Largest financial leverage Total Liabilities $ 91,000 150,400 51,680

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company Expenses Total Assets Net Income DreamWorks Pixar $ 27,000 $ 130,000 $ 53,000 167,000 Universal 102,000 118,000 29,000 78,000 8,400 a. Compute the debt ratio for each of the three companies. Note: Round your answers to 2 decimal places. Company Debt Ratio DreamWorks Pixar Universal b. Which company has the most risk from financial leverage? Largest financial leverage Total Liabilities $ 91,000 150,400 51,680
Transcribed Image Text:Company Expenses Total Assets Net Income DreamWorks Pixar $ 27,000 $ 130,000 $ 53,000 167,000 Universal 102,000 118,000 29,000 78,000 8,400 a. Compute the debt ratio for each of the three companies. Note: Round your answers to 2 decimal places. Company Debt Ratio DreamWorks Pixar Universal b. Which company has the most risk from financial leverage? Largest financial leverage Total Liabilities $ 91,000 150,400 51,680
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