Crowne Cottages, Inc. has current assets of $44,000, long-term assets of $250,900, current liabilities of $42,600, and long-term debt of $156,700. Crowne's debt ratio is: (Round your final answer to two decimal places, X.XX%.)

Question

Quizplus · Accepted Answer

Debt ratio is calculated as total debt divided by total assets.

Total debt = Current liabilities + Long-term debt = $42,600 + $156,700 = $199,300
Total assets = Current assets + Long-term assets = $44,000 + $250,900 = $294,900

Debt ratio = Total debt / Total assets = $199,300 / $294,900 = 0.6758 = 67.58% (rounded to two decimal places)

Therefore, the correct choice is B.