Consider this simplified balance sheet for Geomorph Trading: Current assets $ 120 Current liabilities $ 70 Long-term assets 520 Long-term debt 270 Other liabilities 90 Equity 210 $ 640 $ 640 Required: What is the company’s debt-equity ratio? Note: Round your answer to 2 decimal places.
Consider this simplified balance sheet for Geomorph Trading: Current assets $ 120 Current liabilities $ 70 Long-term assets 520 Long-term debt 270 Other liabilities 90 Equity 210 $ 640 $ 640 Required: What is the company’s debt-equity ratio? Note: Round your answer to 2 decimal places.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 6BE
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Question
Consider this simplified balance sheet for Geomorph Trading:
Current assets | $ 120 | Current liabilities | $ 70 |
Long-term assets | 520 | Long-term debt | 270 |
Other liabilities | 90 | ||
Equity | 210 | ||
$ 640 | $ 640 |
Required:
-
What is the company’s debt-equity ratio?
Note: Round your answer to 2 decimal places.
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