Question
Subject: BUSINESS POLICY Q3 a For each company listed below, compute the debt ratio, which reveals the proportion of assets financed with debt. Debt ratio
Subject: BUSINESS POLICY
Q3 a
For each company listed below, compute the debt ratio, which reveals the proportion of assets financed with debt. Debt ratio =Total liabilities / Total assets
| ($ in Millions) | Date | Total Assets | Total Liabilities | Debt Ratio |
|---|---|---|---|---|
| Miscrosoft (MSFT) | 6/30/2008 | $72,793 | $36,507 | 50.15% |
| Wal-Mart Stores (WMT) | 1/31/2009 | $163,429 | $98,144 | |
| Ford Motor Company (F) | 12/31/2008 | $218,328 | $235,639 |
Q3 b.
Wal-Mart is primarily financed with (debt / equity), resulting in a debt ratio that is (less / more) than 50.00%, while a company primarily financed with equity will have a debt ratio that is (lessI more) than 50.00%. Ford has a debt ratio greater than (50%/100%), indicating its liabilities are (greater /Iess) than its assets.
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Accounting What The World's Best Forensic Accountants And Auditors Know About Forensic Accounting And Auditing That You Dont
Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
