At December 31, Williams Company has total assets of $500,000, total liabilities of $300,000, and total owner's equity of $200,000.
At December 31, Williams Company's debt-to-equity ratio is:
A) 0.25
B) 5.00
C) 0.80
D) 1.50
E) None of the above

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities by total owner's equity. For Williams Company, this is $300,000 / $200,000 = 1.50.

At December 31, Williams Company Has Total Assets of $500,000