The following partial balance sheet is provided for Groome Company: $\begin{array}{lr}
\text { Liabilities and stockholders' Equity }\\
\text { Accounts payable } & \$ 9,000 \
\text { Salaries payable } & 12,000 \
\text { Bonds payable (due in ten years) } & 20,000 \
\text { Common stock, no par } & 30,000 \
\text { Retained earnings } &\underline{ 54,000} \
\text { Total liabilities and stockholders' equity } &\underline{ \$ 125,000}
\end{array}$ What is the company's debt to assets ratio? (Round your answers to the nearest whole percent.)
A) 49%
B) 16%
C) 33%
D) Cannot be determined with the information given.

Question

Quizplus · Accepted Answer

The debt to assets ratio is calculated by dividing total liabilities by total assets. In this case, total liabilities are $90,000 and total assets are $270,000. Therefore, the debt to assets ratio is 33%.

The Following Partial Balance Sheet Is Provided for Groome Company