3. Dave's Guitar Shop is thinking about building an additional property onto the back of its existing building for more storage. Dave consults with his banker about applying for a new loan. The bank asks for Dave's balance to examine his overall debt levels. Dave's total assets is P5,000,000 while his total liabilities is P25,000. Compute Dave's debt ratio.
3. Dave's Guitar Shop is thinking about building an additional property onto the back of its existing building for more storage. Dave consults with his banker about applying for a new loan. The bank asks for Dave's balance to examine his overall debt levels. Dave's total assets is P5,000,000 while his total liabilities is P25,000. Compute Dave's debt ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Dave's Guitar Shop is thinking about building an additional property
onto the back of its existing building for more storage. Dave consults with
his banker about applying for a new loan. The bank asks for Dave's balance
to examine his overall debt levels. Dave's total assets is P5,000,000 while
his total liabilities is P25,000. Compute Dave's debt ratio.
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