Question

the following information is available for both pulaski company and scott company at the current year - end.

	pulaski company	scott company
total liabilities	871,500	565,500
total equity	1,416,000	591,000

complete this question by entering your answers in the tabs below.
required 1 required 2
compute the debt - to - equity ratio for both companies.

	choose numerator:	÷	choose denominator:	debt - to - equity ratio
scott company		÷

Explanation:

Step1: Define debt-to-equity formula

Debt-to-Equity Ratio = $\frac{\text{Total Liabilities}}{\text{Total Equity}}$

Step2: Calculate for Pulaski Company

$\frac{871,500}{1,416,000} = 0.6155$

Step3: Calculate for Scott Company

$\frac{565,500}{591,000} = 0.9569$

Answer:

	Choose Numerator:	÷	Choose Denominator:	Debt-to-Equity Ratio
Scott Company	$\$565,500$	÷	$\$591,000$	$0.96$ (rounded to two decimals)