Durable Plastics Company had the following total assets,liabilities,and equity as of December 31. $$\begin{array} { | l | r | }
\hline \text { Total Assets } & \$ 420,000 \
\hline \text { Total Liabilities } & 133,000 \
\hline \text { Total Equity } & 287,000 \
\hline
\end{array}$$ What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)
A) 31.67%
B) 68.33%
C) 100.00%
D) 46.34%

Question

Durable Plastics Company had the following total assets,liabilities,and equity as of December 31. $$\begin{array} { | l | r | } 
\hline \text { Total Assets } & \$ 420,000 \
\hline \text { Total Liabilities } & 133,000 \
\hline \text { Total Equity } & 287,000 \
\hline
\end{array}$$ What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)
A) 31.67%
B) 68.33%
C) 100.00%
D) 46.34%

Quizplus · Accepted Answer

The debt ratio is calculated as Total Liabilities divided by Total Assets. So, for Durable Plastics Company, it's $133,000 / $420,000 = 0.3167, or 31.67% when converted to a percentage.

Durable Plastics Company Had the Following Total Assets,liabilities,and Equity as of December