NARRBEGIN: Figure 3-1
Figure 3-1
Maria and John Sanchez have just completed their third annual set of financial statements.They met in a personal finance class while in college and still remember their instructor's advice regarding the importance of knowing their financial condition and progress.Even before they got married,they decided that each year on February 2 (Groundhog Day)they would update their cash-flow statement and their balance sheet.

The following information is taken from their latest financial statements:

-Refer to Figure 3-1.What is Maria and John's asset-to-debt ratio?
A) 0.57
B) 35.0
C) 2.56
D) 1.77

Question

NARRBEGIN: Figure 3-1
Figure 3-1
Maria and John Sanchez have just completed their third annual set of financial statements.They met in a personal finance class while in college and still remember their instructor's advice regarding the importance of knowing their financial condition and progress.Even before they got married,they decided that each year on February 2 (Groundhog Day)they would update their cash-flow statement and their balance sheet.
​
The following information is taken from their latest financial statements:
​​ 
-Refer to Figure 3-1.What is Maria and John's asset-to-debt ratio?​
A) ​0.57 
B) ​35.0 
C) ​2.56 
D) ​1.77

Quizplus · Accepted Answer

Maria and John's asset-to-debt ratio can be calculated by dividing their total assets by their total liabilities, which gives us $671,000/$379,000 = 1.77. Therefore, the correct answer is D.

NARRBEGIN: Figure 3-1 Figure 3-1