Please refer to Table 4-3 for the following questions.
Table 4-3
Emery Corporation
Balance Sheet Income Statement

-Based on the information in Table 4-3,the debt ratio is
A) 18.38%.
B) 40.24%.
C) 48.48%.
D) 53.43%.

Question

Please refer to Table 4-3 for the following questions.
Table 4-3
Emery Corporation
Balance Sheet Income Statement
 
-Based on the information in Table 4-3,the debt ratio is
A) 18.38%. 
B) 40.24%. 
C) 48.48%. 
D) 53.43%.

Quizplus · Accepted Answer

The debt ratio is Total Liabilities/Total Assets. In Table 4-3, Total Liabilities is $1,939,000 and Total Assets is $3,996,000. Therefore, the debt ratio is ($1,939,000/$3,996,000) x 100 = 48.48%.

Please Refer to Table 4-3 for the Following Questions