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tankabanditka [31]
3 years ago
13

Gem Jewelers has current assets of $687,600, total assets of $1,711,000, net working capital of $223,700, and long-term debt of

$450,000. What is the debt-equity ratio?
Mathematics
1 answer:
seraphim [82]3 years ago
4 0

Answer:

Debt/Equity=  Total Liabilities /Total Shareholders’ Equity

​Current liabilities = $687,600 − 223,700

Current liabilities = $463,900

Total equity = $1,711,000 − 463,900 − 450,000

Total equity = $797,100

Debt-equity ratio = ($463,900 + 450,000)/$797,100

Debt-equity ratio= 1.15  

​

Step-by-step explanation:

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