Question

Converse Florists​ & Co. reported assets of $ 1 comma 200 and equity of $ 350. What is its debt​ ratio? (Round your percentage answer to two decimal​ places.)

Answer 1

Answer:

70.83%      

Explanation:

Given that,

Company's assets = $1,200

Equity = $350

Dept = Reported assets - Company's equity

        = $1,200 - $350

        = $850

Dept ratio = (Debt ÷ Total assets) × 100

                 = ($850 ÷ $1,200) × 100      

                 = 0.7083 × 100

                 = 70.83%      

Therefore, the Dept ratio of Converse Florists​ & Co. is 70.83%.