Question

Selected balance sheet data follow for Goodyear Tire & Rubber Company for the year ended December 31, 2016 (in millions): Total Operating Liabilities Total Nonoperating Liabilities Total Current Liabilities Total Liabilities Total Liabilities and Shareholders' Equity $6,307 $5,479 $4,817 $11,786 $16,511 What is the company's liabilities-to-equity ratio? A. 2.49 B. 1.40 C. 3.23 D. 0.71 E. None of the above

Answer 1

option A is the correct (2.49)

Step-by-step explanation:

given data:

Total liabilities = $11786, total liabilities and shareholders equity = $16511, total operating liabilities = $6307, Total non-operating expenses = $5479.

Liabilities-to-equity ratio is calculated as follows:

= $11,786 / ($16,511 - $11,786) = 2.49

therefore, the correct option from the given options in the given question is A that is 2.49 is the Liabilities-to-equity ratio.

Note: in order to find the value of equity, the total is subtracted from the total liabilities with shareholders equity.