Camile Plastics Company had the following total assets, liab

Camile Plastics Company had the following total assets, liabilities, and equity as of December 31

Assets $430,000
Liabilities 132,000
Equity 298,000

What is the company’s debt ratio as of December 31? (Round your percentage answer to two decimal places.)
A) 30.70%
B) 69.30%
C) 100.00%
D) 44.30%

ANSWER

A .Debt ratio = Total liabilities / Total assets
Debt ratio = $132,000 / $430,000 = 0.307 or 30.70%