The following information is from Acme's annual report for the years ended Dec. 31:

-Refer to the Acme annual report above.Calculate the debt-to-equity ratio for 2012.
A)8.00
B)3.00
C)0.52
D)0.20

Question

The following information is from Acme's annual report for the years ended Dec. 31:

-Refer to the Acme annual report above.Calculate the debt-to-equity ratio for 2012.
A)8.00 
B)3.00 
C)0.52 
D)0.20

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities / Total equity
In 2012, total liabilities = $62,500 and total equity = $120,000
Debt-to-equity ratio = $62,500 / $120,000 = 0.52

The Following Information Is from Acme's Annual Report for the Years