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Instructions: Computing Leverage and Liquidity Ratios Calculate all formulas in a word document showing the actual formulas and premiums used to compute the ratios. (Please do not use excel) For...

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Instructions: Computing Leverage and Liquidity Ratios Calculate all formulas in a word document showing the actual formulas and premiums used to compute the ratios. (Please do not use excel) For examples: Debt to assets ratio = Total liabilities XXXXXXXXXXTotal assets Debt to equity ratio= Total liabilities XXXXXXXXXXShareholder’s equity
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Instructions: Computing Leverage and Liquidity Ratios Calculate all formulas in a word document showing the actual formulas and premiums used to compute the ratios. (Please do not use excel) For examples: Debt to assets ratio = Total liabilities XXXXXXXXXXTotal assets Debt to equity ratio= Total liabilities XXXXXXXXXXShareholder’s equity Please calculate the following ratiosAssets to equity (%)Total liabilities to assets (%)Total liabilities to equity (%)Long-term debt to equity (%)This document was truncated here because it was created in the Evaluation Mode.

Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
129 Votes
1. Assets to equity ratio
Total assets / Equity(Retained Earning + equity)
= 3275/1043 + 150 = 3275/1193
= 2.74 or 274%
2. Total liabilities to asset ratio
=Total liabilities/Total assets
= 2082/3275
= 0.64 or 64%
3. Total liabilities to equity ratio
Total liabilities/ Shareholder's Equity
= 2082/1193
= 1.75 or 175%
Total liabilities = cu
ent liabilities+...
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