The 2023 financial statements of Summit Corporation contain the following selected data (in millions): Item Value (in millions) Current Assets $90 Total Assets $200 Current Liabilities $50 Total Liabilities $95 Cash $10 Interest Expense $6 Income Taxes $12 Net Income $22 What is the debt to assets ratio? a) 47.5% b) 3.10% c) 57.8% d) 6.5 times

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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Financial accounting question

The 2023 financial statements of Summit Corporation contain the following selected
data (in millions):
Item
Value (in millions)
Current Assets
$90
Total Assets
$200
Current Liabilities
$50
Total Liabilities
$95
Cash
$10
Interest Expense
$6
Income Taxes
$12
Net Income
$22
What is the debt to assets ratio?
a) 47.5%
b) 3.10%
c) 57.8%
d) 6.5 times
Transcribed Image Text:The 2023 financial statements of Summit Corporation contain the following selected data (in millions): Item Value (in millions) Current Assets $90 Total Assets $200 Current Liabilities $50 Total Liabilities $95 Cash $10 Interest Expense $6 Income Taxes $12 Net Income $22 What is the debt to assets ratio? a) 47.5% b) 3.10% c) 57.8% d) 6.5 times
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