Surround, Inc. provides the following data: Calculate the debt to equity ratio. (Round your answer to two decimal places.)
A) 0.42
B) 0.05
C) 1.16
D) 0.72

Question

Surround, Inc. provides the following data:  Calculate the debt to equity ratio. (Round your answer to two decimal places.)
A) 0.42 
B) 0.05 
C) 1.16 
D) 0.72

Quizplus · Accepted Answer

Debt to equity ratio = Total liabilities / Total equity
From the given data, total liabilities = TB5019_00 = $85,553 and total equity = $118,200. 
Therefore, debt to equity ratio = 85553/118200 = 0.72 (rounded to two decimal places). 
Thus, the best choice is D.