Using the Following Balance Sheet and Income Statement Data, What

question 4

Multiple Choice

Using the following balance sheet and income statement data, what is the debt to assets ratio? $$\begin{array} { l r l r } \text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \\\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \\\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000 \\\text { Total assets } & 90,000 & &\end{array}$$ Average common shares outstanding was 15,000.

• A)20.5 percent
• B)30 percent
• C)33.3 percent
• D)40.9 percent

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