Question
The balance sheet for Alpha Corporation follows: Current assets $950,000 Long-term assets (net) 1,500,000 Total assets 2,450,000 Current liabilities 700,000 Long-term liabilities 1,100,000 Total liabilities
The balance sheet for Alpha Corporation follows:
Current assets $950,000
Long-term assets (net) 1,500,000
Total assets 2,450,000
Current liabilities 700,000
Long-term liabilities 1,100,000
Total liabilities 1,800,000
Common stock and retained earnings 650,000
Total liabilities and stockholders' equity $2,450,000
Required: Compute the debt-to-assets and debt-to-equity ratios using the provided balance sheet. Note: Round your answers to 2 decimal places:
Debt-to-assests ratio:
Debt to equity ratio:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Audit Renaissance
Authors: Vakils
1st Edition
8184621639, 978-8184621631
