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

Question

3 years ago

13

$450,000. What is the debt-equity ratio?

1 answer:

seraphim [82] · Answer 1 · 2022-02-17T16:52:07+03:00

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: