Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010 Balance Sheet
Dana Dairy Products
December 31, 2010
-The debt ratio for Dana Dairy Products in 2010 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, 2010  Balance Sheet
Dana Dairy Products
December 31, 2010 
-The debt ratio for Dana Dairy Products in 2010 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. In Table 3.2, we see that the total liabilities for Dana Dairy Products are $1,078,000 and the total assets are $1,958,000. 
Debt ratio = Total liabilities / Total assets 
Debt ratio = $1,078,000 / $1,958,000 
Debt ratio = 0.55 or 55% 
Therefore, the correct answer is C.

Table 3.2 Dana Dairy Products Key Ratios Income Statement