Respuesta :
To solve this problem you must apply the proccedure shown below:
1- You must use the formula for calculate the debt ratio, which is:
[tex] Dr=\frac{Tl}{Ta} [/tex]
Where [tex] Tl [/tex] is the total liabilities and [tex] Ta [/tex] is the total assets
2- Then, when you substitute the values into the formula, you obtain the following resultt:
[tex]Dr= \frac{100,000dollars}{385,000dollars} [/tex]
[tex]Dr=25.97[/tex] %
Therefore, as you can see, the answer is: [tex] 25.97 [/tex]%
Answer:
The debt ratio is 26%
Step-by-step explanation:
To get the debt ratio, we have to use the following formula.
debt ratio=total liabilities /total assests
This ratio indicates the percentage of the total asset amounts that is owed to creditors.
debt ratio=total liabilities /total assests
debt ratio=$100, 000 /$385, 000=0.2597 ≅ 26%