Answer:
Assets would be increased by $15,000 while owner's equity will also increase by $15,000.
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet which are assets, liabilities and owner's equity.
it is given as
Assets = Liabilities + Owners equity
When a business owner invests an amount into a business, it means money is available for the business to operate hence cash is recognized as an asset. However, the owners equity also goes up by the amount invested.
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Answer: 42%
Explanation:
Liabilities= assets-stockholders equity, the debt ratio formula is= (liabilities/ assets)
We solve, ( $910,000-$530,000)=$380,000
$380,000/$910,000= 42%
