Booth Industries Has Liabilities of $105 Million and Total Assets

question 54

True/False

Booth Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

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Definitions:

Consolidated Financial Statements

Consolidated Financial Statements are financial reports that combine the financial position, results of operations, and cash flows of a parent company and its subsidiaries into one document.

Profitability Ratios

Financial metrics that are used to assess a business's ability to generate earnings in comparison to its expenses and other relevant costs incurred during a specific period of time.

Short-Term Obligations

Liabilities or debt obligations that are due to be paid within a year or less, typically involving operating expenses or short-term loans.

Leverage Ratio

A financial ratio that measures the amount of debt used in a company's financing structure in comparison to its equity or assets.