The following balance sheet information is provided for Santana Company for Year 2:

What is the company's debt to equity ratio? (Rounded to 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? (Rounded to 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