Consider this simplified balance sheet for Geomorph Trading:Current assets$ 120Current liabilities$ 70Long-term assets520Long-term debt270 Other liabilities90 Equity210 $ 640 $ 640Required:What is the company’s debt-equity ratio?Note: Round your answer to 2 decimal places.

Debt equity ratio = Total debt / equity

Answered: Consider this simplified balance sheet…

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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What is the company’s debt-equity ratio?

Note: Round your answer to 2 decimal places.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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