At the end of the current year,Leer Company reported total liabilities of $300,000 and total equity of $100,000.The company's debt ratio on the last year-end was:
A)300%.
B)33.3%.
C)75.0%.
D)66.67%.
E)$400,000.

Question

Quizplus · Accepted Answer

The debt ratio is calculated as total liabilities divided by total assets. Total assets equal liabilities plus equity, which is $300,000 + $100,000 = $400,000. The debt ratio is $300,000 / $400,000 = 0.75 or 75.0%.

At the End of the Current Year,Leer Company Reported Total