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29 July, 05:58

Acme incorporated has a debt ratio of. 42, noncurrent liabilities of $20,000 and total assets of $70,000. what is acme's level of current liabilities? select one:

a. $9,400

b. $8,400

c. $10,600

d. $12,348

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Answers (1)
  1. 29 July, 06:27
    0
    Hello!

    The formula is

    Debt radio = (current liabilities+noncurrent liabilities) : total assets

    0.42 = (x+20000) : 70000

    Solve for x

    0.42*70000=x+20000

    X=0.42*70000-20000

    X=9400 ... current liabilities which is the answer.

    Good luck!
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