Asked by Jallisa Jackson on Jun 03, 2024
Verified
Longhorn Company reported the following data at year-end:
Calculate each of the following ratios.Round your answers to two decimal places.
A.Debt-to-equity ratio
B.Current ratio
Debt-to-Equity Ratio
A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.
- Display competence in determining and comprehending final period financial ratios from available data, encompassing turnover and average days ratios.
Verified Answer
LK
Lokesh kumarJun 04, 2024
Final Answer :
A.($350,000 - $200,000)÷ $200,000 = .75 or 75%.
B.$80,000 ÷ $75,000 = 1.07.
B.$80,000 ÷ $75,000 = 1.07.
Learning Objectives
- Display competence in determining and comprehending final period financial ratios from available data, encompassing turnover and average days ratios.