Using the following balance sheet and income statement data for Castillo Company what percentage of the company is financed with equity? $$\begin{array} { l r l r }
\text { Current assets } & \$ 41,000 & \text { Net income } & \$ 48,000 \
\text { Current liabilities } & 22,000 & \text { Stockholders' equity } & 75,000 \
\text { Average assets } & 210,000 & \text { Total liabilities } & 125,000 \
\text { Total assets } & 200,000 & &
\end{array}$$
A)24.3 percent
B)35.7 percent
C)37.5 percent
D)62.5 percent

Question

Using the following balance sheet and income statement data for Castillo Company what percentage of the company is financed with equity? $$\begin{array} { l r l r } 
\text { Current assets } & \$ 41,000 & \text { Net income } & \$ 48,000 \
\text { Current liabilities } & 22,000 & \text { Stockholders' equity } & 75,000 \
\text { Average assets } & 210,000 & \text { Total liabilities } & 125,000 \
\text { Total assets } & 200,000 & &
\end{array}$$
A)24.3 percent
B)35.7 percent
C)37.5 percent
D)62.5 percent

Quizplus · Accepted Answer

Stockholders' equity is $75,000 and total assets are $200,000. Therefore, the percentage of the company financed with equity is $75,000/$200,000 * 100% = 37.5%.

Using the Following Balance Sheet and Income Statement Data for Castillo