Alden Corp. has the following balances as of December 31, 2019: $$\begin{array} { | l | r | }
\hline \text { Total Assets } & \$ 110,000 \
\hline \text { Total Liabilities } & 67,000 \
\hline \text { Total Equity } & 43,000 \
\hline
\end{array}$$ Calculate the debt to equity ratio. (Round your answer to two decimal points.)

Question

Alden Corp. has the following balances as of December 31, 2019: $$\begin{array} { | l | r | } 
\hline \text { Total Assets } & \$ 110,000 \
\hline \text { Total Liabilities } & 67,000 \
\hline \text { Total Equity } & 43,000 \
\hline
\end{array}$$ Calculate the debt to equity ratio. (Round your answer to two decimal points.)

Quizplus · Accepted Answer

The debt to equity ratio is calculated by dividing total liabilities by total equity. Here, it is $67,000 / 43,000 = 1.558$, which rounds to 1.56.

Alden Corp Calculate the Debt to Equity Ratio