The following balance sheet information is provided for Santana Company for Year 2: What is the company's debt to equity ratio? (Round your answers to the nearest whole percent.)
A) 42%
B) 130%
C) 43%
D) 77%

Question

The following balance sheet information is provided for Santana Company for Year 2:  What is the company's debt to equity ratio? (Round your answers to the nearest whole percent.)
A) 42% 
B) 130% 
C) 43% 
D) 77%

Quizplus · Accepted Answer

Debt to equity = Total liabilities ÷ Total stockholders' equity
Debt to equity = ($4,500 + $11,500 + $19,000) ÷ ($30,000 + $15,650) = $35,000 ÷ $45,650 = 77%

The Following Balance Sheet Information Is Provided for Santana Company