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1 January, 22:30

At the beginning of the current year, Snell Co. total assets were $264,000 and its total liabilities were $182,200. During the year, the company reported total revenues of $109,000, total expenses of $84,000 and dividends of $13,000. There were no other changes in equity during the year and total assets at the end of the year were $276,000. The company's debt ratio at the end of the current year is:

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  1. 1 January, 22:55
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    The company's debt ratio at the end of the current year is 66%

    Explanation:

    For computing the debt ratio, we need to apply the formula which is shown below:

    Debt ratio = (Total liabilities) : (total assets) * 100

    = ($182,200 : $276,000) * 100

    = 66%

    The other information which are given in the question is of no use. That's why we do not consider it. Hence, ignored it.
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