Krast Company has total assets of $160,000 and total liabilities of $70,000.The company's debt-to-equity ratio is closest to:
A)0.56
B)0.44
C)0.30
D)0.78

Question

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities F1F1F1S1F1F1F10 Stockholders' equity
= $70,000 F1F1F1S1F1F1F10 $90,000* = 0.78
*Stockholders' equity = Total assets - Total liabilities = $160,000 - $70,000 = $90,000

Krast Company Has Total Assets of $160,000 and Total Liabilities