Question

A corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals:Cash $ 41,000 Current liabilities $ 76,000 Accounts receivable 56,000 Long-term liabilities 31,000 Inventory 61,000 Common stock 101,000 Equipment 146,000 Retained earnings 96,000 Total assets $ 304,000 Total liabilities and equity $ 304,000 Multiple Choicea. 0.54b. 1.28c. 2.08d. 0.35e. 0.65

Answer 1

Answer:

0.54

Explanation:

Debt-to-equity ratio = Total Debt ÷ Total Equity

                                 = $107,000  ÷  $197,000

                                 = 0.54

The company's debt-to-equity ratio equals 0.54