Question

Data from the financial statements of Nancarrow Brothers Co. and J. C Murphy, Inc. are presented below (in millions):

	Nancarrow Brothers Co.	J. C Murphy, Inc.
Total liabilities, 2019	$70,914	$47,422
Total liabilities, 2018	72,208	60,092
Total assets, 2019	100,372	73,744
Total assets, 2018	94,114	70,416
Net Sales, 2019	306,932	163,040
Net income, 2019	280	1,572

To the nearest hundredth, what is the 2019 debt-to-total assets ratio for Nancarrow Brothers Co.?

Select one:

A. 44.16

B. 0.26

C. 3.78

D. 0.71

Answer 1

Debt to total assets ratio

= Total Liabilities /Total assets

= 70,914 / 100,372

= 0. 71

Option D is the answer