The 2015 financial statements of Marker Co. contain the following selected data (in millions). Current Assets $ 75
Total Assets 140
Current Liabilities 40
Total Liabilities 90
Cash 8
The debt to assets ratio is
A) 64.3%.
B) 53.3%.
C) 28.6%.
D) 147.4%.

Question

Quizplus · Accepted Answer

The debt to assets ratio is calculated as Total Liabilities divided by Total Assets. For Marker Co., it is 90/140 = 0.643 or 64.3%.

The 2015 Financial Statements of Marker Co