Question

Durable Plastics Company had the following total​ assets, liabilities, and equity as of December 31. Total Assets ​$420,000 Total Liabilities ​133,000 Total Equity ​287,000 What is the​ company's debt ratio as of December​ 31? (Round your percentage answer to two decimal​ places.)

Answer 1

Answer:

debt ratio = 31.67 %

Explanation:

given data

Total Assets = ​$420,000

Total Liabilities ​= 133,000

Total Equity = ​287,000

to find out

debt ratio

solution

we get here debt ratio that is express as

debt ratio  = $\frac{total\ liability}{total\ assets}$ ×  100   ............................1

put here value and we will get

debt ratio = $\frac{133000}{420000}$ ×  100

debt ratio = 0.31666 ×  100  

debt ratio = 31.67 %