Jewell Company has current assets of $56,000; long-term assets of $135,000; current liabilities of $44,000; and long-term liabilities of $90,000. Jewell Company's debt ratio is:

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The debt ratio is calculated as total liabilities divided by total assets. Total liabilities are $44,000 (current) + $90,000 (long-term) = $134,000. Total assets are $56,000 (current) + $135,000 (long-term) = $191,000. The debt ratio is $134,000 / $191,000 = 0.702 or 70.2%.

Jewell Company Has Current Assets of $56,000; Long-Term Assets of $135,000;