Opis Company has total assets of $475,000 and total liabilities of $130,000.The company's debt-to-equity ratio is closest to
A).32.
B).21.
C).38.
D).27.

Question

Quizplus · Accepted Answer

Debt-to-equity ratio = total liabilities/total equity
Total equity = total assets - total liabilities
Total equity = $475,000 - $130,000
Total equity = $345,000
Debt-to-equity ratio = $130,000/$345,000
Debt-to-equity ratio = 0.3768
Closest answer choice: C) 38.

Opis Company Has Total Assets of $475,000 and Total Liabilities