On December 31,Sulfur Corporation has the following data available: What is the leverage ratio? (Round your final answer to two decimal places. )

Question

On December 31,Sulfur Corporation has the following data available:  What is the leverage ratio? (Round your final answer to two decimal places. )

Quizplus · Accepted Answer

Leverage Ratio = Average assets ÷ Average common stockholders' equity
Average assets = ($780,000 + $870,000 )÷ 2 = $825,000
Average common stockholders' equity = ($460,000 + $230,000)÷ 2 = $345,000
Leverage ratio = $825,000 ÷ $345,000 = 2.39

On December 31,Sulfur Corporation Has the Following Data Available