Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below:

-The debt-to-equity ratio at the end of Year 2 is closest to:
A) 0.38
B) 0.13
C) 0.16
D) 0.43

Question

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below:
  
-The debt-to-equity ratio at the end of Year 2 is closest to:
A) 0.38 
B) 0.13 
C) 0.16 
D) 0.43

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities ÷ Stockholders' equity = $400 ÷ $1,040 = 0.38 (rounded)

Data from Lheureux Corporation's Most Recent Balance Sheet and the Company's