Question

Ques QC2-10 (similar to) Pithville Laundry reported assets of $1,000 and equity of $675. What is Pithviles debt ratio? (Roun
0 0
Add a comment Improve this question Transcribed image text
Answer #1
Correct option is: c. 33%
Workings:
Debt ratio = Total Liabilities / Total Assets
= $325 / $1000
= 33%
Liabilities = Total assets - Total Equity
= $1000 - $675
= $             325

If it is helpful, please rate the answer and if any doubt arises let me know

Add a comment
Know the answer?
Add Answer to:
Ques QC2-10 (similar to) Pithville Laundry reported assets of $1,000 and equity of $675. What is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • tour comprete) Vicksburg Laundry reported assets of $850 and equity of $600. What is Vicksburg's debt...

    tour comprete) Vicksburg Laundry reported assets of $850 and equity of $600. What is Vicksburg's debt ratio? (Round your answer to the nearest whole O A. 29% OB. 71% OC. 42% OD. Not enough information is provided C l our answer

  • A firm has total assets of $1.930,000 and stockholders equity is $612,000. What is the debt...

    A firm has total assets of $1.930,000 and stockholders equity is $612,000. What is the debt to total asset ratio? (Round your answer to the nearest whole percent.) Multiple Choice O O 84% 68% O a None of the items A firm's long-term assets = $60,000, total assets = $210,000, inventory $25,000 and current liabilities $40,000. What are the firm's current ratio and quick ratio? Round your answer to 1 decimal place.) Multiple Choice Current ratio-88, quick ratio - 1...

  • Brown Industries has a debt-equity ratio of 1.6. Its WACC is 10 percent, and its cost...

    Brown Industries has a debt-equity ratio of 1.6. Its WACC is 10 percent, and its cost of debt is 7 percent. There is no corporate tax. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.) What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded...

  • Problem 3-10 Equity Multiplier and Return on Equity [LO 2] Pickler Company has a debt-equity ratio...

    Problem 3-10 Equity Multiplier and Return on Equity [LO 2] Pickler Company has a debt-equity ratio of 1.39. Return on assets is 7.64 percent, and total equity is $695,000. a. What is the equity multiplier? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the...

  • At the end of 2017, Alphabet, Inc., reported stockholders’ equity of $152,502 million and total assets...

    At the end of 2017, Alphabet, Inc., reported stockholders’ equity of $152,502 million and total assets of $197,295 million. Its balance in stockholders’ equity at the end of 2016 was $139,036 million. Net income in 2017 was $12,662 million. a. Calculate Alphabet, Inc., return on equity ratio for 2017. (Round your answer to one decimal place.) b. Calculate its debt-to-equity ratio as of December 31, 2017. (Hint: Apply the accounting equation to determine total liabilities.) Round your answer to one...

  • The Sour Pickle Company has a debt-equity ratio of 1.37. Return on assets is 7.62 percent,...

    The Sour Pickle Company has a debt-equity ratio of 1.37. Return on assets is 7.62 percent, and total equity is $685,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and...

  • Shelton Company has a debt−equity ratio of 1.28. Return on assets is 7.53 percent, and total...

    Shelton Company has a debt−equity ratio of 1.28. Return on assets is 7.53 percent, and total equity is $640,000. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity multiplier times What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Return on equity % What is the net income? (Do not round intermediate...

  • 2018 2019 Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 Assets Liabilities and Owners' Equity Curre...

    2018 2019 Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets $ 3,106 $ 3,312 Current liabilities 14,005 14,506 Net fixed assets Long-term debt $1,369 $ 2,028 10 points 7,317 8,364 Skipped CABO WABO, INC. 2019 Income Statement Sales 22,497 Costs $44,925 eBook 3,855 Print Depreciation Interest paid 1,005 References b. a. What is owners' equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to...

  • SME Company has a debt-equity ratio of .70. Return on assets Is 7 percent, and total...

    SME Company has a debt-equity ratio of .70. Return on assets Is 7 percent, and total equity is $481,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the net income? (Do not round intermediate calculations and round your answer to...

  • SME Company has a debt-equity ratio of .60. Return on assets is 7.9 percent, and total...

    SME Company has a debt-equity ratio of .60. Return on assets is 7.9 percent, and total equity is $510,000. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) What is the net income? (Do not round intermediate calculations and round your answer to the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT