Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31, 2013 Balance Sheet
Dana Dairy Products
December 31, 2013
-The debt ratio for Dana Dairy Products in 2013 was ________. (See Table 3.2)
A) 50 percent
B) 11 percent
C) 55 percent
D) 44 percent

Question

Table 3.2
Dana Dairy Products Key Ratios  Income Statement
Dana Dairy Products
For the Year Ended December 31, 2013  Balance Sheet
Dana Dairy Products
December 31, 2013 
-The debt ratio for Dana Dairy Products in 2013 was ________. (See Table 3.2)
A) 50 percent 
B) 11 percent 
C) 55 percent 
D) 44 percent

Quizplus · Accepted Answer

To calculate the debt ratio, we need to divide total liabilities by total assets. Looking at the balance sheet in Table 3.2, we can see that the total liabilities are $27,500 and the total assets are $50,000. Therefore, the debt ratio is:

$27,500 / $50,000 = 0.55 or 55%

Therefore, the best choice is C, which represents the correct debt ratio of 55%.

Table 3.2 Dana Dairy Products Key Ratios Income Statement