At the End of the Current Year, Leer Company Reported

question 144

Multiple Choice

At the end of the current year, Leer Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was:

• A) $400,000.
• B) 66.67%.
• C) 33.3%.
• D) 75.0%.
• E) 300%.

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Definitions:

Sales

The transactions involving the exchange of goods or services for money, considered the primary revenue source for a business.

Year 2

Refers to the second year of a specified time frame, operation, or financial reporting period.

Return on Investment (ROI)

A measure of the profitability of an investment, calculated as the net profit of the investment divided by the initial cost.

Last Year's

Refers to the previous calendar or fiscal year relative to the current one.