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Just picked up the textbook today and did not have finish the chapter. Here is what I've got for question #5:

Compute the financial leverage ratio for 2004. What does this suggest about Patrie Plastics?

Financial leverage ratio measures the relationship between total assets and 
the stockholder's capital that finances them. The higher the ratio, the more debt is assumed by the company to finance assets. It is computed as follows:

Financial Leverage Ratio = Average Total Assets / Average Stockholders' Equity
"Average" is (Last Year's Amount + This Year's Amount) / 2

Originally Posted by Question #5

35,000+3,000+5,000+4 0,000+2,000+80,000+1 50,000=315,000 (2003 Assets)
20,000+25,000+3,000+ 12,000+80,000+150,00 0+50,000=340,000 (2003 Equity)

30,000+10,000+20,000 +12,000+15,000+20,00 0+20,000=127,000 (2004 Assets)
6,000+42,000+15,000+ 85,000+2,000=150,000 (2004 Equity)

315,000+127,000=442, 000
340,000+150,000=490, 000

442,000/490,000=0.9020408

I might have the numbers wrong. Could I see #1 through #4? Post here or e-mail me. Thanks.