Question

10. John Hart, M. D., reported the following trial balance as of September 30, 2018: (Click the icon to view the trial balance.) Calculate the debt ratio for John Hart, M. D. Select the debt ratio formula on the first line and then calculate the ratio. (Round the percentage to the nearest whole percent.) (1) (2) - Debt ratio 1: Data Table John Hart, M. D. Trial Balance September 30, 2018 Balance Credit Debit 30,000 7,900 3,000 29,000 75,000 30,000 Account Title Cash Accounts Receivable Office Supplies Land Building Office Equipment Accounts Payable Utilities Payable Uneamed Revenue Notes Payable Common Stock Dividends Service Revenue Salaries Expense Utilities Expense 1,800 800 24,795 69,000 110,000 57,000 50,505 23,500 1,100 200 Advertising Expense $ 256,700 $ 256,700 Total

Answer 1

a) Debt ratio

Total liabilities	/	Total assets	=	Debt ratio
96195	/	174900	=	55%