Below is selected information from Marker's 2012 financial statements:
-Marker's 2012 Liabilities to Shareholders' Equity ratio is
A) 100.0%
B) 170.9%
C) 63.1%
D) 129.3%

Question

Below is selected information from Marker's 2012 financial statements:  
-Marker's 2012 Liabilities to Shareholders' Equity ratio is
A) 100.0% 
B) 170.9% 
C) 63.1% 
D) 129.3%

Quizplus · Accepted Answer

The Liabilities to Shareholders' Equity ratio is calculated by dividing total liabilities by total shareholders' equity. Given the data: Total Liabilities = $1,500,000 and Total Shareholders' Equity = $878,000. The calculation is $1,500,000 / $878,000 = 1.709 or 170.9%.

Below Is Selected Information from Marker's 2012 Financial Statements