Chestnut, Incorporated reported the following balances on its balance sheet at December 31, Year 1: On January 1, Year 2, Chestnut purchased equipment for $40,000 on account. What is the company's debt-to-assets ratio immediately after the purchase of the equipment?
A)0.42
B)0.46
C)0.37
D)0.34

Question

Chestnut, Incorporated reported the following balances on its balance sheet at December 31, Year 1:  On January 1, Year 2, Chestnut purchased equipment for $40,000 on account. What is the company's debt-to-assets ratio immediately after the purchase of the equipment?
A)0.42 
B)0.46 
C)0.37 
D)0.34

Quizplus · Accepted Answer

The Answer of Chestnut, Incorporated reported the following balances on its balance sheet at December 31, Year 1:  On January 1, Year 2, Chestnut purchased equipment for $40,000 on account. What is the company's debt-to-assets ratio immediately after the purchase of the equipment?
A)0.42 
B)0.46 
C)0.37 
D)0.34

Chestnut, Incorporated Reported the Following Balances on Its Balance Sheet