Debt Ratio,Debt to equity Ratio. Busch company balance sheet shows total liabilities of $510,000 total Equity of $226,000 and total assets of $736,000. Calculate debt ratio round two decimal places. And calculate the debt to equity ratio round two decimal places . eBookPrint ItemDebt Ratio, Debt-to-Equity RatioBusch Company's balance sheet shows total liabilities of $510,000, total equity of $226,000, and total assets of $736,000.Required:1. Calculate the debt ratio. Round to two decimal places.2. Calculate the debt-to-equity ratio. Round to two decimal places.3. CONCEPTUAL CONNECTION Based on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Busch's financi1. Busch has chosen to pursue a rather high risk financing strategy. Busch should calculate and carefully manage its times-intereensure that its pretax earnings are sufficient to make any required interest payments on its large debt.2. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitability raits pretax earnings are sufficient to make any dividend payments.3. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitability ratits pretax earnings are sufficient to make any dividend payments.PreviousCheck My Work more CreccMAk leme u akeAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress3falseеВookPrint ItemDebt Ratio, Debt-to-Equity RatioBusch Company's balance sheet shows total liabilities of $510,000, total equity of $226,000, and total assets of $736,000.Required:1. Calculate the debt ratio. Round to two decimal places.2. Calculate the debt-to-equity ratio. Round to two decimal places.3. CONCEPTUAL CONNECTION Based on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Busch's fina1. Busch has chosen to pursue a rather high risk financing strategy. Busch should calculate and carefully manage its times-intensure that its pretax earnings are sufficient to make any required interest payments on its large debt.2. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitabilitits pretax earnings are sufficient to make any dividend payments.3. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitabilityits pretax earrings are sufficient to make any dividend payments.

Debt ratio = Total liabilities/ Total Assets Debt to Equity Ratio = Debt / Shareholders Equity

Answered: Debt Ratio,Debt to equity Ratio. Busch…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Debt Ratio,Debt to equity Ratio. Busch company balance sheet shows total liabilities of $510,000 total Equity of $226,000 and total assets of $736,000. Calculate debt ratio round two decimal places. And calculate the debt to equity ratio round two decimal places .

eBook
Print Item
Debt Ratio, Debt-to-Equity Ratio
Busch Company's balance sheet shows total liabilities of $510,000, total equity of $226,000, and total assets of $736,000.
Required:
1. Calculate the debt ratio. Round to two decimal places.
2. Calculate the debt-to-equity ratio. Round to two decimal places.
3. CONCEPTUAL CONNECTION Based on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Busch's financi
1. Busch has chosen to pursue a rather high risk financing strategy. Busch should calculate and carefully manage its times-intere
ensure that its pretax earnings are sufficient to make any required interest payments on its large debt.
2. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitability ra
its pretax earnings are sufficient to make any dividend payments.
3. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitability rat
its pretax earnings are sufficient to make any dividend payments.
Previous
Check My Work more CreccMAk leme u

akeAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress3false
еВook
Print Item
Debt Ratio, Debt-to-Equity Ratio
Busch Company's balance sheet shows total liabilities of $510,000, total equity of $226,000, and total assets of $736,000.
Required:
1. Calculate the debt ratio. Round to two decimal places.
2. Calculate the debt-to-equity ratio. Round to two decimal places.
3. CONCEPTUAL CONNECTION Based on the ratios calculated in Requirements 1 and 2, comment on the riskiness of Busch's fina
1. Busch has chosen to pursue a rather high risk financing strategy. Busch should calculate and carefully manage its times-int
ensure that its pretax earnings are sufficient to make any required interest payments on its large debt.
2. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitabilit
its pretax earnings are sufficient to make any dividend payments.
3. Busch has chosen to pursue a rather low risk financing strategy. Busch should calculate and carefully manage its profitability
its pretax earrings are sufficient to make any dividend payments.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions