Table 4.1
Bacon Signs
2013 Income Statement (000's)

Bacon Signs
2012 and 2013 Balance Sheets (000's)

-Use the information to determine the 2013 long term debt to equity ratio for Bacon Signs.
A)$5,500/$5,420 = 1.01
B)$5,500/$9,620 = 0.57
C)$6,678/ $5,420 = 1.23
D)$6,678/$9,620 = 0.69

Question

Table 4.1
Bacon Signs
2013 Income Statement (000's)
 
Bacon Signs
2012 and 2013 Balance Sheets (000's)

-Use the information to determine the 2013 long term debt to equity ratio for Bacon Signs.
A)$5,500/$5,420 = 1.01 
B)$5,500/$9,620 = 0.57 
C)$6,678/ $5,420 = 1.23 
D)$6,678/$9,620 = 0.69

Quizplus · Accepted Answer

The long-term debt to equity ratio is calculated by dividing the company's long-term debt by its shareholders' equity. Choice B correctly calculates this ratio using the given figures, indicating a ratio of 0.57.

Table 4.1 Bacon Signs