Question

Sanders Co. has total assets of $415.0 million. Its total liabilities are $115.1 million and its equity is $300 million. Calculate its debt ratio. (Round your answer to 1 decimal place.)

Answer 1

Debt ratio = 27.7 %

Step-by-step explanation:

given data

total assets = $415 million

total liabilities = $115.1 million

equity = $300 million

solution

we get here debt ratio that is express as given formula so as

Debt ratio = Total Liabilities ÷ total assets ........,,,,,,,,........1

put here value and we will get Debt ratio

Debt ratio =
`(115.1)/(415)`

Debt ratio = 0.2773

Debt ratio = 27.7 %