Question

Cy

Irfan runs a small business. His business's total liabilities amount to $200.000. His net profit for the latest accounting period is $50.000. The total
value of all the business assets comes to $600.000. What is the debt to asset ratio in the case of Irfan's business?
The debt to assets ratio of Irfan's business to two decimal places, is ???
percent

Answer 1

33.33%

Step-by-step explanation:

The debt to assets ratio indicates the proposition of a company's assets that have been financed through debt.

the formula for determining this ratio is as follows

Debt to asset ratio = Total debts/total assets x 100

For Cy Ifran, total debts or liabilities =$200,000

total assets = $600,000

Debt to asset ratio =$200,000/ $600,000

=0.33 x 100

=33.33%