Charger Company's most recent balance sheet reports total assets of $27,000,000,total liabilities of $15,000,000 and total equity of $12,000,000.The debt to equity ratio for the period is (rounded to two decimals):
A)0.56
B)1.80
C)0.44
D)0.80
E)1.25

Question

Quizplus · Accepted Answer

The debt to equity ratio is calculated by dividing total liabilities by total equity. Here, $15,000,000 / $12,000,000 = 1.25.

Charger Company's Most Recent Balance Sheet Reports Total Assets of $27,000,000,total