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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 31
Calculating the Debt Ratio and the Debt-to-Equity Ratio
Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of $8,125,000, and total assets of $40,625,000.
Required:
Note : Round answers to two decimal places.
1. Calculate the debt ratio.
2. Calculate the debt-to-equity ratio.
Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of $8,125,000, and total assets of $40,625,000.
Required:
Note : Round answers to two decimal places.
1. Calculate the debt ratio.
2. Calculate the debt-to-equity ratio.
Explanation
Verified
Verified
1)
Debt ratio : The ratio of total exter...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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