Question

n its 2016 annual report, Kohl's Corporation reported the following (in millions): Total assets $13,574 Total shareholders' equity $ 5,177 Total liabilities $ 8,397 What proportion of Kohl's Corporation is financed by nonowners?

Answer 1

Answer:

Proportion of Kohl's Corporation financed by non-owners = approximately 61.9%

Explanation:

The formula used for calculating the proportion financed by non-owners is given as:

Proportion of Kohl's Corporation financed by non-owners = liabilities / total assets

As total assets in the annual report of Kohl's Corporation = $13,574

and total liabilities in the annual report of Kohl's Corporation = $ 8,397

therefore by putting the values in the above formula, we get

Proportion of Kohl's Corporation financed by non-owners = 8397 / 13574

Proportion of Kohl's Corporation financed by non-owners = 0.6186

Converting this result to the percentage, we get

Proportion = 0.6186 * 100

Proportion of Kohl's Corporation financed by non-owners = 61.86%

or approximately 61.9%