Question

The total debts to total assets ratio of Ranford Co. was .29. The total of Ranford's assets was $200,000. What's the amount of total debt to the company?

A. $68,000
B. $75,000
C. $58,000
D. $65,000

Answer 1

Multiply assets by ratio

200,000 x 0.29 = $58,000

answer: c. $58,000