Use this balance sheet and income statement for the first year of operations for Layton Novelties,Inc.to answer the following question.Use ending balances whenever average balances are required for computing ratios. 
The debt to equity ratio for Layton Novelties is
Definitions:
Subjective Test
A method of assessment where outcomes are influenced by the perspectives, interpretations, or judgments of the evaluator.
Agency Relationship
A relationship in which one party (the agent) agrees to act for or on behalf of another party (the principal), typically in business transactions.
Operation Of Law
The automatic application of law to certain actions and circumstances without the need for an agreement or court action.
Agency Relationship
An agency relationship is a legal arrangement in which one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.
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