Flanders Company Has Total Assets of $400,000 and Total Liabilities

question 209

Multiple Choice

Flanders Company has total assets of $400,000 and total liabilities of $280,000.The company collects an account receivable of $20,000.After this transaction,the company's debt ratio will be: (Round your final answer to two decimal places. )

• A)0.67.
• B)0.70.
• C)0.65.
• D)1.43.