Question
Computing Long-term Solvency Ratios TPITA Total Debt Ratio = (TA -TE)/TA (5,606 - 2,768)/5,606 = 50.62% *Debt/Equity (D/E) =TD/ TE - (5,606 - 2,768)/2,768 1.03
Computing Long-term Solvency Ratios TPITA Total Debt Ratio = (TA -TE)/TA (5,606 - 2,768)/5,606 = 50.62% *Debt/Equity (D/E) =TD/ TE - (5,606 - 2,768)/2,768 1.03 times Equity Multiplier (EM) = TA / TE = 1 + D/E !3! 1+ 1.03 = 2.03 * Long-term debt ratio = LTD / (LTD + TE) - 843/ (843 + 2,768) = 23.35% Ex. If D/E-0.385, what is total debt ratio? No teprodicon or diun thout consenit
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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
