Using the Following Balance Sheet and Income Statement Data, What

Multiple Choice

Using the following balance sheet and income statement data, what is the debt to assets ratio? $\begin{array}{lrlr}\text { Current assets } & \$ 14,000 & \text { Net income } & \$ 21,000 \\\text { Current liabilities } & 8,000 & \text { Stockholders' equity } & 39,000 \\\text { Average assets } & 80,000 & \text { Total liabilities } & 21,000\\\text { Total assets } 60,000\end{array}$ Average common shares outstanding was 10,000.

A) 26 percent
B) 13 percent
C) 65 percent
D) 35 percent