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Greetings, the two question are still incorrect and I had the same calculations that you did, so the formula is not working for these, what
Greetings,
the two question are still incorrect and I had the same calculations that you did, so the formula is not working for these, what am I missing?
8 Computation of debt ratio :
Debt ratio = Total liability / Total assets
= $2561360 / 5763060
=0.444
14 Computation of return on total assets:
Return on total assets = Net income / Average Total assets
=432000 / 5261261.5
=8.21%
Average total assets = (5763060+4759463) / 2
= 5261261.5
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