Chase Challengingware Store Had $500,000 in Total Assets,$175,000 in Total

question 186

Short Answer

Chase Challengingware Store had $500,000 in total assets,$175,000 in total liabilities,and $325,000 in shareholders' equity.Interest expense for the period was $7,500.Income from operations was $50,000.Calculate the debt-to-equity ratio.Round your answer to the nearest tenth of a percent.

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Definitions:

Perfectly Elastic

describes a demand or supply scenario where quantity demanded or supplied changes infinitely in response to any change in price.

Efficient Level of Output

The quantity of production that maximizes the difference between total revenue and total cost, or equivalently, minimizes average total cost.

Perfect Competitor

An idealized market structure in which many firms sell identical products, entry and exit are easy, and all buyers and sellers are well-informed, leading to perfect competition.

Inelastic Demand Curve

A situation where the demand for a good or service does not significantly change with a change in its price.