References Carlin Company has total assets of $1,000,000, liabilities of $400,000, and equity of $600,000. What...

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References Carlin Company has total assets of $1,000,000, liabilities of $400,000, and equity of $600,000. What is the debt u

business accounting

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Answer 1

Answer #1

Answer)

Calculation of debt ratio

Debt Ratio = Total liabilities/ Total Assets

= $ 400,000/ $ 1,000,000

= 40%

Therefore debt ratio of the company is 40%.

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Answer 2

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