Calculate the debt to equity and debt to assets. round both answers to 2 decimal places. AssetsCurrent Assets:TMT, Inc.Balance SheetFor the year ended 12/31/20X1Cash and Cash EquivalentsShort-Term InvestmentsAccount ReceivableInventoryTotal Current AssetsProperty and EquipmentLong-Term InvestmentsGoodwillTotal Assets$300,000150,000150,0001,000,000$1,600,000LiabilitiesCurrent Liabilities:0Accounts PayableTaxes PayableTotal Current LiabilitiesLong-Term DebtOther$4,400,0001,500,000 Total LiabilitiesShareholders' EquityTotal Liabilities and$7,500,000 Shareholders' Equity$ 500,000250,000$750,000$2,000,000650,000$3,400,0004,100,000$7,500,000

DEBT TO EQUITY RATIO Debt to Equity Ratio is the Ratio Between Total Debt & Total Equity. Debt…

Answered: Calculate the debt to equity and debt…

Business

Accounting

Calculate the debt to equity and debt to assets. round both answers to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Calculate the debt to equity and debt to assets. round both answers to 2 decimal places.

Assets
Current Assets:
TMT, Inc.
Balance Sheet
For the year ended 12/31/20X1
Cash and Cash Equivalents
Short-Term Investments
Account Receivable
Inventory
Total Current Assets
Property and Equipment
Long-Term Investments
Goodwill
Total Assets
$300,000
150,000
150,000
1,000,000
$1,600,000
Liabilities
Current Liabilities:
0
Accounts Payable
Taxes Payable
Total Current Liabilities
Long-Term Debt
Other
$4,400,000
1,500,000 Total Liabilities
Shareholders' Equity
Total Liabilities and
$7,500,000 Shareholders' Equity
$ 500,000
250,000
$750,000
$2,000,000
650,000
$3,400,000
4,100,000
$7,500,000

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