A store wants to print flyers to advertise its grand opening a printer will charge $50 and $0.05 per flyer if the store has a bu
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Given is:
The total liabilities are $5,000,000 including a loan to expand services.
Net worth at the balance sheet date is given $ 4,000,000.
Hence out of $5,000,000 , $ 4,000,000 is capital and remaining $1,000,000 is loan
Debts to net worth ratio is =
= 0.25 or 25%