1. Introduction: Debt-to-equity ratio is calculated to measure the amount of debt against the equity of the company. It is calculated by dividing the debt by the equity of the company. To calculate: The (a) present debt-to equity ratio, and (b) debt to equity ratio after borrowing the loan. (a) Present debt-equity ratio: Total assets: $620,000 Total liabilities: $220,000 Equity = total assets − total liabilities = $ 620 , 000 − $ 220 , 000 = $ 400 , 000 Debt-equity ratio is calculated as: Debt-equity ratio = total liabilities equity = $ 220 , 000 $ 400 , 000 = 0.55 (b) Total equity: $400,000 Total liabilities: $220,000 + $500,000 = $720,000 Debt-equity ratio is calculated as: Debt-equity ratio = total liabilities equity = $ 720 , 000 $ 400 , 000 = 1.80 2. Introduction: Debt-to-equity ratio is calculated to measure the amount of debt against the equity of the company. It is calculated by dividing the debt by the equity of the company. To discuss: The level of risk involved if M will borrow the fund. The level of risk will be more if M will borrow funds. The ideal debt-to equity ratio is1-1.50. If M will borrow funds, the debt to equity ratio will rise to 1.80. The use of more debt in the company is not good as it will put a burden on the company to pay fixed interest amount. The shareholders will have a threat of their dividend payment because the funds of the company will go to the debtholders in the form of interest payments. Therefore, the level of risk will be more if M will borrow funds.

What is the correct answer of this question general Accounting?

Financial accounting

PART B The Palmer School of Business operates a transportation service, solely for the purpose of providing commuting services to off-campus students. You have been hired as accounting students to analyze the cost of providing the transportation services and to develop a cost function which describes the behaviour of the related costs. The schools' administration has assembled the data for a twelve-month period pertaining to the monthly total costs of providing the service and the corresponding number of students who used the transportation system each month. You were recently taught how to use the Excel graphing tool, and a member of the team successfully generated the scattergram given below from the data set provided. Total Transportation Costs PALMER SCHOOL OF BUSINESS SCATTER DIAGRAM 300,000 Line of Best Fit 250,000 200,000 150,000 100,000 50,000 0 500 1,000 1,500 # of Students 2,000 2,500 3,000 The other team members are now tasked to use the graph to provide the administrators…