Given the following Year 12 balance sheet data for a footwear company: Balance S

Question

Given the following Year 12 balance sheet data for a footwear company:
Balance Sheet Data
Cash on Hand 10,000
Total Current Assets $ 70,000
Total Assets 280,000
Overdraft Loan Payable 5,000
1-Year Bank Loan Payable 10,000
Current Portion of Long-Term Loans 17,000
Total Current Liabilities 48,000
Long-Term Bank Loans Outstanding 90,000
Shareholder Equity: Year 11 Balance Year 12 Change
Common Stock 10,000 0 10,000
Additional Capital 90,000 0 90,000
Retained Earnings 30,000 12,000 42,000
Total Shareholder Equity 130,000 +12,000 142,000

Based on the above figures and the formula for calculating the debt-assets ratio found on the Help screen for p. 5 of the Footwear Industry Report, the companys debt-assets ratio (where debt is defined to include both short-term and long-term debt) is

A. 43.6%.

B. 32.1%.

C. 38.2%.

D. 41.8%.

E. None of these.

Explanation / Answer

122/280 = 43.6

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