Answer:
The total debts amounts to $191,700
Explanation:
The formula of total debt to total assets ratio is follows:
Total debt to total assets ratio = Total debts / Total assets
where
Ratio is 0.71
Total assets amounts to $270,000
Putting the values into the formula above:
0.71 = Total debts / $270,000
0.71 × $270,000 = Total debts
Total debts = $191,700
