The 2014 financial statements of Harper Co. contain the following selected data (in millions). Current assets $ 90
Total assets 160
Current liabilities 40
Total liabilities 75
Cash 8
Interest expense 5
Income taxes 10
Net income 16
The debt to assets ratio is
A) 46.9%.
B) 44.4%.
C) 2.13%.
D) 6.2 times.

Question

Quizplus · Accepted Answer

The debt to assets ratio is calculated as Total Liabilities divided by Total Assets. Here, it is 75/160 = 0.46875, which is 46.9%.

The 2014 Financial Statements of Harper Co