asked 105k views
1 vote
Cado industries has total debt of $6,800 and a debt-equity ratio of .36. what is the value of the total assets

asked
User Krissa
by
8.4k points

1 Answer

4 votes
total debt = $6,800
debt equity ratio = 0.36
now first we calculate the total equity by using this formula,

Total equity = total debt / debt equity ratio

total equity = $6,800 / .36

= $18,889

Now total assets = total debt + total equity

Total assets = $6,800 + 18,889

= $25,689

thus the value of assets is $25,689
answered
User Wurstbro
by
8.5k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.