The 2014 financial statements of Shadow Co. contain the following selected data (in millions). $\begin{array}{lr}
\text { Current Assets } & \$ 75 \
\text { Total Assets } & 140 \
\text { Current Liabilities } & 40 \
\text { Total Liabilities } & 77 \
\text { Cash } & 8
\end{array}$ The debt to total assets ratio is
A) 55.0%.
B) 53.3%.
C) 28.6%.
D) 1.82%.

Question

Quizplus · Accepted Answer

The debt to total assets ratio is calculated as Total Liabilities divided by Total Assets. Here, it is $ \frac{77}{140} \times 100 = 55.0\% $.

The 2014 Financial Statements of Shadow Co The Debt to Total Assets Ratio Is A) 55

The 2014 Financial Statements of Shadow Co The Debt to Total Assets Ratio Is
A) 55