Lasch Corporation has provided the following financial data from its balance sheet and income statement:

-The company's debt-to-equity ratio at the end of Year 2 is closest to:
A) 0.30
B) 0.36
C) 0.41
D) 0.60

Question

Lasch Corporation has provided the following financial data from its balance sheet and income statement:
  
-The company's debt-to-equity ratio at the end of Year 2 is closest to:
A) 0.30 
B) 0.36 
C) 0.41 
D) 0.60

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities ÷ Stockholders' equity
= $498,000 ÷ $835,000 = 0.60 (rounded)

Lasch Corporation Has Provided the Following Financial Data from Its