Dante's Designs has current assets of $56,000;long-term assets of $135,000;current liabilities of $44,000;and long-term liabilities of $90,000.Dante's debt ratio is:

Question

Quizplus · Accepted Answer

The debt ratio is calculated as total liabilities divided by total assets. Total liabilities are $44,000 (current) + $90,000 (long-term) = $134,000. Total assets are $56,000 (current) + $135,000 (long-term) = $191,000. The debt ratio is $134,000 / $191,000 = 0.702 or 70.2%.

Dante's Designs Has Current Assets of $56,000;long-Term Assets of $135,000;current