Rosewood Company had Current Assets of $582, Current Liabilities of $433, Total Assets of $732, and only Current Liabilities are Total Liabilities. What is Rosewood's Debt Ratio?

Question

Quizplus · Accepted Answer

The Debt Ratio is calculated as Total Liabilities divided by Total Assets. Since Current Liabilities are the only liabilities, the Debt Ratio is $433 / $732 = 0.59.

Rosewood Company Had Current Assets of $582, Current Liabilities of $433