Debt-to-assets ratio Debt-to-equity ratio %

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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Brief Exercise 9-3 (Algo) Ratio analysis LO 9-3
The balance sheet for Alpha Corporation follows:
Current assets
Long-term assets (net)
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Common stock and retained earnings
Total liabilities and stockholders' equity
Debt-to-assets ratio
Debt-to-equity ratio
$998,000
1,508,000
2,506,000
Required:
Compute the debt-to-assets and debt-to-equity ratios using the provided balance sheet.
Note: Round your final answers to 1 decimal place.
%
704,000
1,104,000
1,808,000
698,000
$2,506,000
Transcribed Image Text:Brief Exercise 9-3 (Algo) Ratio analysis LO 9-3 The balance sheet for Alpha Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity Debt-to-assets ratio Debt-to-equity ratio $998,000 1,508,000 2,506,000 Required: Compute the debt-to-assets and debt-to-equity ratios using the provided balance sheet. Note: Round your final answers to 1 decimal place. % 704,000 1,104,000 1,808,000 698,000 $2,506,000
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