Presented below is selected data from the financial statements of Morgan Corporation for the current and priof year. 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 S1,950,000 Current liabilities $210,000 $180,000 $1,210,000 $1,180,000 Total liabilities Total stockholders' equity $1,290,000 S770,000 Net sales $4,800,000 $3,900,000 $3,200,000 $2.690,000 Cost of Goods Sold Wages expense $973,000 S869.000 $60.000 $50,000 Supplies expense Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 S520,000 $250,000 Net income Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign.
Presented below is selected data from the financial statements of Morgan Corporation for the current and priof year. 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 S1,950,000 Current liabilities $210,000 $180,000 $1,210,000 $1,180,000 Total liabilities Total stockholders' equity $1,290,000 S770,000 Net sales $4,800,000 $3,900,000 $3,200,000 $2.690,000 Cost of Goods Sold Wages expense $973,000 S869.000 $60.000 $50,000 Supplies expense Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 S520,000 $250,000 Net income Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year:
12/31/X2
12/31/X1
Current assets
$430,000
$220,000
Total assets
$2,500,000
$1,950,000
Current liabilities
$210,000
$180,000
Total liabilities
$1,210,000
$1,180,000
Total stockholders' equity
$1,290,000
S770,000
$4,800,000
$3,900,000
Net sales
Cost of Goods Sold
$3,200,000
$2,690,000
Wages expense
$973,000
$869,000
Supplics expense
$60,000
$50,000
Depreciation expense
$35,000
$32,000
$12,000
$9,000
Interest expense
$520,000
$250.000
Net income
Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the
% sign.
Expert Solution
Step 1 Introduction
The debt ratio is a financial ratio that tells about the percentage of total assets of company with respect to debt. It is calculated as ratio total debt and total assets.
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