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? $$\begin{array} { l r l r } \text { Current assets } & \$ 7,000 & \text { Net income } & \$ 15,000 \\\text { Current liabilities } & 4,000 & \text { Stockholders' equity } & 21,000 \\\text { Average assets } & 44,000 & \text { Total liabilities } & 9,000 \\\text { Total assets } & 30,000 & &\end{array}$$ Average common shares outstanding was 10,000.

A) 20.5 percent
B) 30 percent
C) 33.3 percent
D) 40.9 percent