Debt Ratio: Debt ratio is the relationship between the Total liabilities and Total Assets of a corporation. Debt ratio shows the part of assets financed by debts. It is calculated by dividing total liabilities by total assets. The formula of debt ratio is as follows: Debt Ratio = Total Liabilities Total Assets To Calculate: The Ratios of Liabilities to Stockholder's Equity for year 1 and 2

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Chapter 8, Problem 8.10.3MBA

To determine

Concept Introduction:

Debt Ratio:

Debt ratio is the relationship between the Total liabilities and Total Assets of a corporation. Debt ratio shows the part of assets financed by debts. It is calculated by dividing total liabilities by total assets. The formula of debt ratio is as follows:

Debt Ratio = Total LiabilitiesTotal Assets

To Calculate:

The Ratios of Liabilities to Stockholder's Equity for year 1 and 2

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