Partin Manufacturing Partin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
Refer to the Partin Manufacturing information above. Partin's debt-to-equity ratio for the year 2012 is: (round to two decimal places)
A) .25.
B) .82.
C) .45.
D) .14.

Question

Partin Manufacturing Partin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:
  Refer to the Partin Manufacturing information above. Partin's debt-to-equity ratio for the year 2012 is: (round to two decimal places)
A) .25. 
B) .82. 
C) .45. 
D) .14.

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total debt by total equity. From the financial statements provided, we can determine that Partin Manufacturing had total debt of $900,000 and total equity of $1,100,000 at the end of 2012. Therefore, the debt-to-equity ratio is ($900,000/$1,100,000) = 0.82.

Partin Manufacturing Partin Manufacturing Has the Following Information Available from Its