Register
Lucky Laundry reported assets of $950 and equity of $580. What is Lucky's debt ratio?
297,714 views
15 votes
15 votes
Lucky Laundry reported assets of $950 and equity of $580. What is Lucky's debt ratio?

User Thomas Stock
by
2.7k points

1 Answer

21 votes
21 votes

Answer:

0.3894

Step-by-step explanation:

Debt Ratio = Total Debts/Total Assets

We will find the amount of Debt since amount of total assets is given

Assets = Liabilities + Equity

$950 = L + $580

L = $950 - $580

L = $370

Now lets find the Debt ratio

Debt Ratio = Total Debts/Total Assets

= $370/$950

= 0.3894

User Mmo
by
3.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend
Link Copied!