Selected data from 2014 financial statements of Xi Corporation include the following (amount in millions): Current assets ¥ 759
$$\begin{array} { l r }
\text { Current assets } & ¥ 759 \
\text { Total assets } & 1,200 \
\text { Current liabilities } & 400 \
\text { Total liabilities } & 750 \
\text { Cash } & 80 \
\text { Interest expense } & 50 \
\text { income taxes } & 100 \
\text { Net income } & 160
\end{array}$$
The debt to assets ratio is
A) 62.5%.
B) 52.7%.
C) 1.60%.
D) 6.2 times.

Question

Selected data from 2014 financial statements of Xi Corporation include the following (amount in millions): Current assets ¥ 759
$$\begin{array} { l r } 
\text { Current assets } & ¥ 759 \
\text { Total assets } & 1,200 \
\text { Current liabilities } & 400 \
\text { Total liabilities } & 750 \
\text { Cash } & 80 \
\text { Interest expense } & 50 \
\text { income taxes } & 100 \
\text { Net income } & 160
\end{array}$$
The debt to assets ratio is
A) 62.5%.
B) 52.7%.
C) 1.60%.
D) 6.2 times.

Quizplus · Accepted Answer

Debt to assets ratio = Total liabilities / Total assets = 750 / 1,200 = 0.625 = 62.5%

Selected Data from 2014 Financial Statements of Xi Corporation Include