Using the following balance sheet and income statement data what is the debt to assets ratio? $$\begin{array}{l}
\begin{array} { l r l c }
\text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \
\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \
\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000
\end{array}\
\text { Total assets } \quad 90,000
\end{array}$$
A)20.5 percent
B)30 percent
C)33.3 percent
D)40.9 percent

Question

Using the following balance sheet and income statement data what is the debt to assets ratio? $$\begin{array}{l}
\begin{array} { l r l c } 
\text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \
\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \
\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000
\end{array}\
\text { Total assets } \quad 90,000
\end{array}$$
A)20.5 percent
B)30 percent
C)33.3 percent
D)40.9 percent

Quizplus · Accepted Answer

The debt to assets ratio is calculated by dividing total liabilities by total assets. Here, it is $27,000 / $90,000 = 0.30$, or 30 percent.

Using the Following Balance Sheet and Income Statement Data What