Current Assets Are $200,000,long-Term Assets Are $300,000,current Liabilities Are $100,000,long-Term

question 144

Multiple Choice

Current assets are $200,000,long-term assets are $300,000,current liabilities are $100,000,long-term liabilities are $200,000,paid-in finance is $150,000,and retained earnings total $50,000.What is the total debt to total assets ratio?

• A) 0.2 or 0.2 to 1
• B) 0.4 or 0.4 to 1
• C) 0.6 or 0.6 to 1
• D) 0.9 or 0.9 to 1

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