Question

Total Assets = 810000
Total Liabilities = 260000
Current Liabilities = 40000
Debt-equity ratio is :
(a) 0.5:1
(c) 2.5:1
(b) 0.4:1
(d) 4:1​

Answer 1

Answer:

Answer: (c) 2.5 : 1

Explanation:

this is your answer please give me a point please make me brainless I hope I can help you

Answer 2

Given-    Total Assets = 810000

              Total Liabilities = 260000

              Current Liabilities = 40000

To find- The debt equity ratio

solution- We know, equity = Total assets minus total liabilities

                               equity = 81,0000 - 26,0000

                                              =5,50,000

          The equity is 5,50,000.

         Debt = Total liabilities minus current liabilities

                  = 26,0000 - 4,0000

                  = 22,0000

Debt equity ratio = Dividing debt by equity

                              = 22,0000 / 5,50,000

                               =2.5:1

Hence, the debt equity ratio is 2.5:1, option c .