accounts payable-$513,000 notes payable-$251,000 _______________________________

Question

accounts payable-$513,000 notes payable-$251,000 _____________________________________________________________________________________ current liabilities -$764,000 ______________________________________________________________________________________ Long-term debt -$1,153,000 Common equity- $4,657,000 _______________________________________________________________________________________ total liabilities an equity -$6,574,000 What percentage of the firms assets does the firm finance using debt(liabilities)? The fraction of the firms assets that the firm financec using debt is___& (round to one decimal place)

Explanation / Answer

The debt of the firm is it's long term debt + current liabilities = $ 1,153,000+$764,000 = $1917000 The total asses = total liabilities and equity= 6,574,000 Hence, the percentage of firm's assets that the firm finance using debt is = $1917000 / 6,574,000= 29.16% or round it off to 29.16%

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