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Vladimir [108]
3 years ago
8

Multiple Choice Question The following selected information pertains to Wilson Company. Current liabilities: $100; long-term lia

bilities: $150; contributed capital: $120; retained earnings: $50; accumulated other comprehensive income: $20. The company's debt to equity ratio (rounded to two digits after the decimal point) is
Business
1 answer:
zzz [600]3 years ago
5 0

Answer:

The debt to equity ratio is 1.32

Explanation:

The computation of the debt to equity ratio is shown below;

Debt to equity ratio is

= Debt ÷ equity

where, Debt is long term + current liabilities

And, the equity is contributed capital + retained earnings + other incomes

= ($100 + $150) ÷ ($120 + $50 + $20)

= $250 ÷ $190

= 1.32

Hence, the debt to equity ratio is 1.32

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