Last year, Long Beach Nursing Homes had total revenue of $58 million and net income of $1.5 million. Its total asset turnover ratio was 1.2 and its return on equity was 6 percent. The company is financed entirely with debt and common equity. What is the company's debt ratio? Hint: Use total asset turnover ratio and return on equity. Step 1-Identify the relevant data Total revenue Net income Total asset turnover ratio Return on equity Step 2-Calculate total assets Total asset turnover ratio= Total revenues / total assets. Total assets-Total revenues / total assets turnover ratio Total assets= Step 3-Calculate total equity Return on equity-Net income / total equity Total equity-Net income / Return on equity Total equity Step 4-Calculate debt Debt-Total assets-total equity Debt= Step 5-Calculate debt ratio Debt ratio - Total debt/ total assets Debt ratio-