Problem 1: Below is the financial information for Justin Bieber's Merchandising company for the year 2020: Cash and Cash Equivalents Accounts Receivable Merchandise Inventory Machinery and Equipment...

Extracted text: Problem 1: Below is the financial information for Justin Bieber's Merchandising company for the year 2020: Cash and Cash Equivalents Accounts Receivable Merchandise Inventory Machinery and Equipment Furnitures and Fixtures Total Assets 513,374 312,745 112,038 1,039,782 59,744 2,037,683 Suppose that the total current assets of the company for the year 2019 is P1,317,873 and the total fixed asset for the same year is P687,369 plus there is a prepaid expenses for 2020 of P35,000 for insurance. Compute for the financial leverage ratio assuming that the value of the total liabilities for the company is P856,971.