Question Help E12-29 (similar to) Naylor Corporation has the following data as o

Question

Question Help E12-29 (similar to) Naylor Corporation has the following data as of December 31, 2018: $ 2 28,310 259,690 Total Current Liabilities 58,420 Total Stockholders' Equity Total Current Assets 62,100 Other Assets Long-term Liabilities 136,080 Property, Plant, and Equipment, Net Compute the debt to equity ratio at December 31, 2018. (Round your answer to two decimal places, X.XX.) l Total stockholders' equity Debt to equity ratio Total liabilities I $ 194,500 Choose from any list or enter any number in the input fields and then click Check Answer All parts showing Clear All Final Check esc F1 F3 FS F6 4 tab

Explanation / Answer

Computation of Debt Equity Ratio

Debt Equity Ratio = Total Liabilities / Total Shareholders’ Equity

For computing Debt Equity Ratio we need to compute the Shareholders’ Equity as follows:

Assets:

Property, Plant and Equipment, Net           -          $ 259,690

Total Current Assets                                       -          $ 62,100

Other Assets                                                    -          $ 28,310   

            Total Assets          ( A )                        -          $ 350,100

Liabilities:

Total Current Liabilities                                 -           $ 58,420

Long – Term Liabilities                                   -          $ 136,080

            Total Liabilities        (B)                        -         $ 194,500

Total Shareholders’ Equity (A- B)                - $ 155,600

Therefore, Debt Equity Ratio = Total Liabilities / Total Shareholders’ Equity

                                                     = $ 194500 / $ 155600

                                                     = 1.25

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.