The following data came from the financial statements of Petrini Company:

-Refer to Exhibit 14-6. Given the information above, compute the assets-to-equity ratio (rounded to two decimal places) for Petrini Company.

Question

The following data came from the financial statements of Petrini Company:
 
-Refer to Exhibit 14-6. Given the information above, compute the assets-to-equity ratio (rounded to two decimal places) for Petrini Company.

Quizplus · Accepted Answer

The assets-to-equity ratio is calculated as Total Assets divided by Total Equity. Without the specific figures from Exhibit 14-6, the correct choice is based on the typical range for this ratio, which is often greater than 1, indicating that the company uses more debt than equity to finance its assets.

The Following Data Came from the Financial Statements of Petrini