Below is selected information from Marker's 2012 financial statements:

A) 105.1%
B) 63.1%
C) 78.3%
D) 100.0%

Question

Below is selected information from Marker's 2012 financial statements:

A) 105.1% 
B) 63.1% 
C) 78.3% 
D) 100.0%

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total debt by total equity. In this case, total debt is $35,000 and total equity is $55,500, resulting in a ratio of 0.631 or 63.1%. A lower debt-to-equity ratio indicates lower financial risk and stronger solvency for the company.

Below Is Selected Information from Marker's 2012 Financial Statements