At the End of the Current Year, Norman Company Reported

Multiple Choice

At the end of the current year, Norman Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:

A) 300%.
B) 33.3%
C) 75.0%.
D) $400,000.
E) Cannot be determined from the information provideD.On the last year-end, total liabilities were $300,000 and total equity was $100,000. That means total assets were $400,000. Therefore, the debt to assets ratio was $300,000/$400,000 or 75.0%.