Question

Cal debt to Eq ratio when total asset is 35000 Total debt is 25000 and current liability is 8000

Answer 1

Answer:

Debt Equity Ratio =1.7:1

Explanation:

Long term debt=Total debt- Current liability = 25000-8000=17000.

Equity=Total Assets-Total Debt= 35000- 25000=10000.

Debt to Equity Ratio = Long term debt / equity=

17000/10000=1.7:1. Ans.