The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering...
90.2K
Verified Solution
Link Copied!
Question
Accounting
The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0. Based on this information, an investor can conclude: Billy's Catering finances a relatively lower portion of its assets with liabilities than Jackson's Shoes. Billy's Catering has a lower risk from its financial leverage. Jackson's Shoes has a higher risk from its financial leverage. Billy's Catering has the exact same dollar amount of total liabilities and total assets. Jackson's Shoes has less equity per dollar of assets than Billy's Catering.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
