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Pacific Wave Corporation has current liabilities of $80,000 and long-term liabilities of $120,000. The company's equity consists of $100,000 in common stock and $60,000 in retained earnings. Calculate Pacific Wave's debt-to-equity ratio.

Pacific Wave Corporation has current liabilities of $80,000 and long-term liabilities of $120,000. The company's equity consists of $100,000 in common stock and $60,000 in retained earnings. Calculate Pacific Wave's debt-to-equity ratio.

Managerial Accounting: The Cornerstone of Business Decision-Making
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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Pacific Wave Corporation has current liabilities of $80,000 and long-term liabilities of $120,000. The company's equity consists of $100,000 in common stock and $60,000 in retained earnings. Calculate Pacific Wave's debt-to-equity ratio.
Transcribed Image Text:Pacific Wave Corporation has current liabilities of $80,000 and long-term liabilities of $120,000. The company's equity consists of $100,000 in common stock and $60,000 in retained earnings. Calculate Pacific Wave's debt-to-equity ratio.
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