A company reports total assets of $900,000 and shareholders' equity of $600,000.Calculate the debt ratio.
A)33.33%
B)50%
C)66.67%
D)40%

Name: A company reports total assets of $900,000 and shareholders' equity of $600,000.Calculate the debt ratio. A)33.33% B)50% C)66.67% D)40%
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Quizplus · Accepted Answer

Debt ratio = Total debt / Total assetsTotal debt = Total assets - Shareholders' equityTotal debt = $900,000 - $600,000 = $300,000Debt ratio = $300,000 / $900,000 = 33.33%

A Company Reports Total Assets of $900,000 and Shareholders' Equity