The following data is from Delta's common size financial statement: Earnings after taxes 18% Equity 40% Current assets 60% Current liabilities 30% Sales $300 Total assets $1,400 What is Delta's total-debt-to-equity ratio? A. 1.5 B. 1 C. 2

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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The following data is from Delta's common size financial statement:
Earnings after taxes 18%
Equity
40%
Current assets
60%
Current liabilities
30%
Sales
$300
Total assets
$1,400
What is Delta's total-debt-to-equity ratio?
A. 1.5
B. 1
C. 2
Transcribed Image Text:The following data is from Delta's common size financial statement: Earnings after taxes 18% Equity 40% Current assets 60% Current liabilities 30% Sales $300 Total assets $1,400 What is Delta's total-debt-to-equity ratio? A. 1.5 B. 1 C. 2
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