Rosewood Company had Current Assets of $582, Current Liabilities of $433, Total Assets of $732, and only Current Liabilities are Total Liabilities. If Rosewood executes a note for $500 for six months, what is the new debt ratio?

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The debt ratio is calculated as Total Liabilities divided by Total Assets. Initially, Total Liabilities are $433. After executing the note, Total Liabilities become $433 + $500 = $933. Total Assets remain $732. The new debt ratio is $933 / $732 = 1.27.

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