Keystone Corporation's balance sheet shows the following liability and shareholders' equity amounts: current liabilities,$100,000; bonds payable,$150,000; finance lease obligations,$20,000; deferred income tax liability,$5,000; and total shareholders' equity,$500,000.What is its debt-to-equity ratio?

Question

Quizplus · Accepted Answer

$100,000 (Current liabilities)+ $150,000 (Bonds payable)+ $20,000 (Lease obligations)+ $5,000 (Deferred income taxes)/ $500,000 (Total shareholders' equity)
$275,000/$500,000 = .55

Keystone Corporation's Balance Sheet Shows the Following Liability and Shareholders