Summit Works Ltd. has provided the following financial data for Year 2: Item Total assets Total liabilities Year 2 $1,450,000 $590,000 Total stockholders' equity $860,000 What is the company's debt-to-equity ratio at the end of Year 2? a. 0.69 b. 0.85 c. 0.64 d. 0.52

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
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Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Summit Works Ltd. has provided the following financial data for Year 2:
Item
Total assets
Total liabilities
Year 2
$1,450,000
$590,000
Total stockholders' equity $860,000
What is the company's debt-to-equity ratio at the end of Year 2?
a. 0.69
b. 0.85
c. 0.64
d. 0.52
Transcribed Image Text:Summit Works Ltd. has provided the following financial data for Year 2: Item Total assets Total liabilities Year 2 $1,450,000 $590,000 Total stockholders' equity $860,000 What is the company's debt-to-equity ratio at the end of Year 2? a. 0.69 b. 0.85 c. 0.64 d. 0.52
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