Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities,$5,000;Bonds Payable,$1,500;Lease Obligations,$2,000;and Deferred Income Taxes,$300.Total stockholders' equity was $6,000.The debt-to-equity ratio is
A)0.63.
B)0.83.
C)1.42.
D)1.47.

Question

Quizplus · Accepted Answer

Total debt = $5,000 + $1,500 + $2,000 = $8,500Debt-to-equity ratio = Total debt / Total stockholders' equity = $8,500 / $6,000 = 1.42

Line Corporation's Balance Sheet Showed the Following Amounts for Their