Question
The following financial information is taken from the balance sheets of the Lambeth Company and the Maritza Company: Lambeth Maritza Total debt $350,000 $850,000 Total
The following financial information is taken from the balance sheets of the Lambeth Company and the Maritza Company:
| Lambeth | Maritza | |
|---|---|---|
| Total debt | $350,000 | $850,000 |
| Total assets | 550,000 | 1,000,000 |
Calculate the debt-to-total assets ratio.
Round answers to the nearest whole percentage, when appropriate.
Lambeth Answer%
Martiza Answer%
Which firm has the higher level of solvency? Answer: Lambeth or Maritza
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
