Shipley Corporation has provided the following data from its most recent balance sheet:
$$\begin{array} { l l l }
\text { Tatal assets......... } & \$ 760,000 \
\text { Tatal liabilities } \ldots \ldots \ldots & \$ 590,00\
\text { Tatal stackhalders' equity...... } & \$ 170,000
\end{array}$$ The debt-to-equity ratio is closest to:
A) 0.29
B) 3.47
C) 0.22
D) 0.78

Question

Shipley Corporation has provided the following data from its most recent balance sheet:
$$\begin{array} { l l l } 
\text { Tatal assets......... } & \$ 760,000 \
\text { Tatal liabilities } \ldots \ldots \ldots & \$ 590,00\
\text { Tatal stackhalders' equity...... } & \$ 170,000
\end{array}$$ The debt-to-equity ratio is closest to:
A) 0.29
B) 3.47
C) 0.22
D) 0.78

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities by total stockholders' equity. Using the provided data, the calculation is \$590,000 / \$170,000 = 3.47.

Shipley Corporation Has Provided the Following Data from Its Most