WRJ has a debt ratio of .4,current liabilities of $18,000,and total assets of $120,000.What is the level of WRJ's total liabilities?
A) $22,000
B) $48,000
C) $58,000
D) $63,934

Question

Quizplus · Accepted Answer

We can use the formula:

Debt Ratio = Total Liabilities / Total Assets

0.4 = Total Liabilities / $120,000

Total Liabilities = 0.4 x $120,000 = $48,000

Therefore, the level of WRJ's total liabilities is $48,000.

WRJ Has a Debt Ratio of