Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. $$\begin{array} { | l | r | }
\hline \text { Total Assets } & \$ 430,000 \
\hline \text { Total Liabilities } & 131,000 \
\hline \text { Total Equity } & 299,000 \
\hline
\end{array}$$ What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

Question

Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. $$\begin{array} { | l | r | } 
\hline \text { Total Assets } & \$ 430,000 \
\hline \text { Total Liabilities } & 131,000 \
\hline \text { Total Equity } & 299,000 \
\hline
\end{array}$$ What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

Quizplus · Accepted Answer

The debt ratio is calculated as Total Liabilities divided by Total Assets. For Durable Plastics Company, this is $131,000 / $430,000 = 0.30465, which when converted to a percentage and rounded to two decimal places is 30.47%.

Durable Plastics Company Had the Following Total Assets, Liabilities, and Equity