Use the following information for questions:
Dorada Industries' books revealed the following data for 2011: $$\begin{array} { l c c r }
\text { Total assets } & \$ 575,000 & \text { Shareholders' equity } & \$ 222,900 \
\text { Current liabilities } & 52,100 & \text { Long-term liabilities } & 300,000 \
\text { Operating Cash flow } & 125,500 &
\end{array}$$
-The debt\equity ratio for 2011 is closest to:
A)1.25
B)1.34
C)1.57
D)2.33

Question

Use the following information for questions:
Dorada Industries' books revealed the following data for 2011: $$\begin{array} { l c c r } 
\text { Total assets } & \$ 575,000 & \text { Shareholders' equity } & \$ 222,900 \
\text { Current liabilities } & 52,100 & \text { Long-term liabilities } & 300,000 \
\text { Operating Cash flow } & 125,500 &
\end{array}$$
-The debt\equity ratio for 2011 is closest to:
A)1.25
B)1.34
C)1.57
D)2.33

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities / Shareholders' equity= (Current liabilities + Long-term liabilities) / Shareholders' equity= (52,100 + 300,000) / 222,900= 1.57

Use the Following Information for Questions: Dorada Industries' Books Revealed

Use the Following Information for Questions:
Dorada Industries' Books Revealed