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valkas [14]
3 years ago
8

The Fram family has liabilities of $167,00 and assets of $433,000. What is their debt ratio?

Business
1 answer:
maxonik [38]3 years ago
4 0

Answer:

Their debt ratio is about 0.039.

Explanation:

Given information:

liabilities = $16700

Assets = $433,000

We need to find their debt ratio.

\text{Debt ratio} = \dfrac{Liabilities}{Assets}

Substitute the given values in the above formula.

\text{Debt ratio} = \dfrac{16700}{433000}

\text{Debt ratio} = \dfrac{167}{4330}

\text{Debt ratio} \approx 0.038568

\text{Debt ratio} \approx 0.039

Therefore, their debt ratio is about 0.039.

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