Keystone Corporation's Balance Sheet Shows the Following Liability and Shareholders

question 48

Multiple Choice

Keystone Corporation's balance sheet shows the following liability and shareholders' equity amounts: current liabilities,$100,000; bonds payable,$150,000; finance lease obligations,$20,000; deferred income tax liability,$5,000; and total shareholders' equity,$500,000.What is its debt-to-equity ratio?

• A) 0.20
• B) 0.35
• C) 0.55
• D) 1.22