Answer:
66.62%
Step-by-step explanation:
The debt ratio is the total liabilities divided by total assets. At the end of the year, total assets stood at $266,000, the increase in retained earnings which is the excess of revenue over expenses and dividends payment does not affect liabilities, as a result, liabilities stayed the same at $177,200.
Debt ratio=total liabilities/total assets
debt ratio=$177,200/$266,000
debt ratio=66.62%