Brief Exercise 9-63 Ratio Analysis Trevor Corporation had $2,900,000 in total liabilities and $4,300,000 in total...
Brief Exercise 9-63
Ratio Analysis
Trevor Corporation had $2,900,000 in total liabilities and $4,300,000 in total assets as of December 31, 2019. Trevor calculates that 40% of assets are designated as current, while $500,000 of Trevor's total liabilities are long-term.
Required:
Calculate Trevor's debt to assets ratio and its long-term debt to equity ratio. Round your answers to two decimal places.
| Debt to Total Assets | |
| Long-Term Debt to Total Equity |
Homework Answers
Debt to total assets = Total Liabilities / Total assets
= 2,900,000/4,300,000
= 0.67
Assets = Liabilities + equity
4,300,000 = 2,900,000 + equity
Equity = 1,400,000
Long term debt to total equity = long-term liabilities / equity
= 500,000/1,400,000
= 0.36
Kindly comment if you face any issues
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Brief Exercise 9-63
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