The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010: The debt ratio for Dunkin Company for 2011, was:
A)1)87.
B)0)50.
C)0)55.
D)1)82.

Question

The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010:  The debt ratio for Dunkin Company for 2011, was:
A)1)87. 
B)0)50. 
C)0)55. 
D)1)82.

Quizplus · Accepted Answer

Debt ratio is calculated by dividing total liabilities by total assets.
For 2011, total liabilities = $452,300 and total assets = $820,985.
So, debt ratio = $452,300 / $820,985 = 0.55.
Therefore, the correct answer is C) 0.55.

The Following Data Represent Selected Information from the Comparative Income