Answer:
Expenses Total Assets Net Income Total Liabilities
Dreamworks $22,000 $40,000 $19,000 $30,000
Pixar $67,000 $150,000 $27,000 $147,000
Universal $12,000 $68,000 $5,000 $17,000
<u>Debt ratio:</u> Total Debt / Total Assets
Dreamworks = $30,000 / $40,000 = 0.75
Pixar = $147,000 / $150,000 = 0.98
Universal = $17,000 / $68,000 = 0.25
<u>Financial Leverage:</u> Asset / Equity
Dreamworks = $40,000 / (40,000-30,0000) = 4
Pixar = $150,000 / (150,000-147,000) = 50
Universal = $68,000 / (68,000-17000) = 1.33
Pixar Has the most financial leverage.
