The Financial Manager at Sips and Chips, a Local Restaurant

Multiple Choice

The financial manager at Sips and Chips, a local restaurant, has calculated the debt­to­assets ratio at 42% compared to an industry average of 1.23. This means that Sips and Chips:

A) is much more dependent on debt than the average local restaurant.
B) is at risk of being unable to pay its short­ term debts when they come due.
C) has much less debt than the average local restaurant.
D) has much more debt than the average local restaurant.