The following data is from Gamma Corporation's common size accounting statement: Earnings after taxes: 15% Equity: 35% Current assets: 45% Current liabilities: 25% Sales: $450,000 Total assets: $1,800,000 What is Gamma Corporation's total-debt-to-equity ratio? A. 1.86 B. 0.71 C. 2.5 D. 1.25

The following data is from Gamma Corporation's common size accounting statement: Earnings after taxes: 15% Equity: 35% Current assets: 45% Current liabilities: 25% Sales: $450,000 Total assets: $1,800,000 What is Gamma Corporation's total-debt-to-equity ratio? A. 1.86 B. 0.71 C. 2.5 D. 1.25

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 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...

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Can you solve this general accounting problem with appropriate steps and explanations?

The following data is from Gamma Corporation's common size accounting
statement:
Earnings after taxes: 15% Equity: 35% Current assets: 45% Current
liabilities: 25% Sales: $450,000 Total assets: $1,800,000
What is Gamma Corporation's total-debt-to-equity ratio?
A. 1.86 B. 0.71 C. 2.5 D. 1.25

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