John Davis Has a Debt Ratio of 0

Multiple Choice

John Davis has a debt ratio of 0.25,which tells us that John

A) is insolvent since the ratio is less than 1.0.
B) could have $10,000 in total assets and $7,500 in net worth.
C) has 25% of his income allocated to reducing debt.
D) might have $2,500 in liquid assets and $10,000 in current debts.