Please explain the accurate process for solving this financial accounting question with proper principles. Lunatic Solutions has total assets of $360,000 and totalliabilities of $120,000. What is the company's debt-to-equityratio?A. 0.33B. 0.50C. 0.67D. 0.75

Answered: Lunatic Solutions has total assets of…

Lunatic Solutions has total assets of $360,000 and total liabilities of $120,000. What is the company's debt-to-equity ratio? A. 0.33 B. 0.50 C. 0.67 D. 0.75

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 49E

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Question

Please explain the accurate process for solving this financial accounting question with proper principles.

Lunatic Solutions has total assets of $360,000 and total
liabilities of $120,000. What is the company's debt-to-equity
ratio?
A. 0.33
B. 0.50
C. 0.67
D. 0.75

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