Using the following excerpts from the financial statements of KRJ Enterprises, c
ID: 2781880 • Letter: U
Question
Using the following excerpts from the financial statements of KRJ Enterprises, calculate the debt-equity ratio, using total liabilities in the numerator. Present your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
Cash
$187
Short-term investments
$209
Accounts receivable
$375
$403
Other current assets
$204
Fixed assets (net)
$1,082
Intangible assets
$215
Long-term investments
$333
Total assets
$3,500
Short-term debt
$136
Accounts payable
$232
Accrued liabilities
$157
Other current liabilities
$145
Long-term debt
$610
Other long-term liabilities
$164
Total liabilities
$2,099
Stockholders’ equity
$1,381
Total liabilities and equity
$3,500
Cash
$187
Short-term investments
$209
Accounts receivable
$375
Inventory$403
Other current assets
$204
Fixed assets (net)
$1,082
Intangible assets
$215
Long-term investments
$333
Total assets
$3,500
Short-term debt
$136
Accounts payable
$232
Accrued liabilities
$157
Other current liabilities
$145
Long-term debt
$610
Other long-term liabilities
$164
Total liabilities
$2,099
Stockholders’ equity
$1,381
Total liabilities and equity
$3,500
Explanation / Answer
Debt Equity ratio= Total Liabilities/ Shareholders equity = ($2099/$1,381)*100 =151.99%
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