Question

Charger Company's most recent balance sheet reports total assets of $28,413,000, total liabilities of $16,113,000 and total equity of $12,300,000. The debt to equity ratio for the period is (rounded to two decimals):

Answer 1

Debt to equity ratio is 1.31

Step-by-step explanation:

Given the above inflation, the formula for debt to equity ratio is

= Total debt / Total equity

= $16,113,000 / $12,300,000

= 1.31

Therefore, debt to equity ratio is 1.31