Durable Plastics Company had the following total assets,liabilities,and equity as of December 31. 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.  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

A)Debt ratio = Total liabilities / Total assets
Debt ratio = $133,000 / $420,000 = 0.3167 or 31.67%

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