Find out debt to equity ratio, Accounting Basics

Current Assets are $70,000, non-current assets are $150,000, current liabilities are $40,000 and long term liabilties are $30,000. What is the debt to equity ratio?

Stock holder Equity = total assets - total liabilities

(70,000 + 150,000) - (40,000 + 30,000) = 150,000 SE

Debt to Equity = Total Liabilities / stock holder equity

70,000/150,000 = 0.46666

Posted Date: 2/26/2013 2:50:52 AM | Location : United States

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