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Sv. - Use the following information to determine the company's total debt ratio. On December 31st, a company's Balance Sheet show the following: Cash Accounts

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Sv. - Use the following information to determine the company's total debt ratio. On December 31st, a company's Balance Sheet show the following: Cash Accounts Receivable Inventory Prepaid Insurance Long-term Assets Accounts Payable Notes Payable due in 10 months Wages Payable Long-term Liabilities Stockholders' (Owner's) Equity $ 10,000 30,000 80,000 6,000 200,000 30,000 25,000 5,000 70,000 196,000 1.35 (135% of the assets are owed to creditors) 0.75 (75% of the assets are owed to creditors) Long-term Liabilities Stockholders' (Owner's) Equity 70,000 196,000 1.35 (135% of the assets are owed to creditors) 1.75 (75% of the assets are owed to creditors) None of the responses are correct. .40 (40% of the assets are owed to creditors) 1.2 (120% of the assets are owed to creditors)

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