Merv’s Magic Shop has $56,000.00 in assets and $14,000.00 in liabilities. Merv’s current financial ratio is
2 answers:
4:1.
56,000÷2 = 28,000
14,000÷2 = 7,000
28,000/7,000 = 28/7
28 ÷ 7 = 4
---- -----
7 ÷7 = 1
4:1
Hope this helps!
Answer:
4:1
Step-by-step explanation:
The financial ratio for Merv is the ratio of assets to liabilities. This can be determined by dividing the value of the assets and the liabilities:
Therefore for everything $4 of assets there is $1 of liabilities. The ratio is 4:1.
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