Calculate the total debt to total assets ratio. (Enter your response as a decima

Question

Calculate the total debt to total assets ratio. (Enter your response as a decimal rounded to two places.)

LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2014 and 2015 2015 2014   Gross sales $ 22,800     $ 17,850   Sales returns and allowances 900     100   Net sales $ 21,900      $ 17,750   Cost of merchandise (goods) sold 11,050      7,700   Gross profit $ 10,850     $ 10,050   Operating expenses:      Depreciation $ 1,080     $ 790      Selling and administrative 5,050     3,900      Research 930     690      Miscellaneous 740     490        Total operating expenses $ 7,800     $ 5,870   Income before interest and taxes $ 3,050     $ 4,180   Interest expense 940     690   Income before taxes $ 2,110     $ 3,490   Provision for taxes 844     1,396   Net income $ 1,266     $ 2,094

Explanation / Answer

Total Debt to Total asset ratio =Total Liabilities /Total asset

2015 = 40900 / 86700

        = .47

2014 = 31300/ 63100

       = .50

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