On December 31,2018,a company had assets of $16 billion and stockholders' equity of $8 billion.That same company had assets of $20 billion and stockholders' equity of $9 billion as of December 31,2019.During 2019,the company reported total sales revenue of $9 billion and total expenses of $7 billion.What is the company's debt-to-assets ratio on December 31,2019?
A)0.55
B)0.45
C)0.035
D)0.01

Question

Quizplus · Accepted Answer

Liabilities = Assets − Stockholders' equity
= $20 billion − $9 billion = $11 billion
Debt-to-assets ratio = Total liabilities ÷ Total assets
= $11 billion ÷ $20 billion = 0.55

On December 31,2018,a Company Had Assets of $16 Billion and Stockholders