Test: Exam 2 Time Remaining: 01 113 This Question: 1 pt 43 of 32 (12 complete) T

Question

Test: Exam 2 Time Remaining: 01 113 This Question: 1 pt 43 of 32 (12 complete) This Test: 32 Total assets Current liabilities Long-term liabilities $625,000 $58,000 $274,000 $522,000 $52,000 5245,000 $225,000 $522,000 Common stockholders' equity Total liabilities and stockholders equity $293,000 $625,000 Inventory and prepaid expenses account for $30,000 of the current years current assets Average inventory for the current year is $36,250 Average net accounts receivable for the current year is $45.000 There are 35,000 shares of common stock outstanding Total dividends paid during the current year were $17.000 The market price per share of common stock is $20 What is the debt ratio for the current year? OA 051 OB. 1.97 C. 191 D. 0.53

Explanation / Answer

Correct Answer (D) 0.53

Calculation

Debt Ratio

Numerator

/

Denominator

Debt Ratio

Total Debt

/

Total Assets

Debt Ratio

(58000+274000)

/

$               625,000.00

0.53

to 1

Debt Ratio

Numerator

/

Denominator

Debt Ratio

Total Debt

/

Total Assets

Debt Ratio

(58000+274000)

/

$               625,000.00

0.53

to 1

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.