The following information is available from the most recent financial statements of the Attaché Corporation: $\begin{array}{lr}
\text { Total Assets } & \$ 800,000 \
\text { Net Income } & 120,000 \
\text { Average total liabilities } & 400,000 \
\text { Sales revenue } & 1,500,000 \
\text { Total liabilities } & 500,000 \
\text { Average total assets } & 700,000
\end{array}$ What is the debt-to-asset ratio?
A)57.1%
B)62.5%
C)160%
D)175%

Question

Quizplus · Accepted Answer

The debt-to-asset ratio is calculated as Total Liabilities / Total Assets. Using the given figures, this is $500,000 / $800,000 = 0.625 or 62.5%.

The Following Information Is Available from the Most Recent Financial