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13 December, 20:27

Mitchell Florists reported assets of $1,400 and equity of $350. What is its debt ratio? (Round your percentage answer to two decimal places.)

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  1. 13 December, 20:37
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    Debt ratio = 3 : 1

    Explanation:

    Asset = Capital

    Capital = Debt + Equity

    I. e Asset = Debt + Equity

    1400 = D + 350

    D = 1050

    Debt ratio = Debt / Equity

    Debt ratio = 1050/350

    Debt ratio = 3 : 1
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