Question

Alden Corp. has the following balances as of December​ 31, 2019:Total Assets $90,000Total Liabilities 60,000Total Equity 30,000Calculate the debt to equity ratio.​ A. 0.64.B. 0.92.C. 1.56.D. 256.

Answer 1

2.00

Step-by-step explanation:

Calculation of the debt to equity ratio

Using this formula

Debt to equity ratio= Total liabilities/Total Shareholders equity

Where,

Total liabilities=60,000

Total Shareholders equity =30,000

Let plug in the formula

Debt to equity ratio=60,000/30,000

Debt to equity ratio =2.00

Therefore debt to equity ratio will be 2.00