Use the following information to answer the next three questions:
A partial balance sheet ($s in thousands)for Captain D's Sportswear is shown below.

-The debt to equity ratio is:
A)0.33.
B)0.77.
C)1.17.
D)1.30.

Question

Use the following information to answer the next three questions:
A partial balance sheet ($s in thousands)for Captain D's Sportswear is shown below.
 
-The debt to equity ratio is:
A)0.33. 
B)0.77. 
C)1.17. 
D)1.30.

Quizplus · Accepted Answer

The debt to equity ratio is calculated as total liabilities divided by total equity. In this case, the total liabilities are $1,170,000 and total equity is $900,000. Therefore, the debt to equity ratio is $1,170,000/$900,000 = 1.30.

Use the Following Information to Answer the Next Three Questions