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The following information was available for the year ended December 31, 2022: Earnings before interest and taxes (operating income) $ 50,000 Interest expense 10,000 Income

The following information was available for the year ended December 31, 2022:

Earnings before interest and taxes (operating income) $ 50,000
Interest expense 10,000
Income tax expense 12,000
Net income 28,000
Total assets at year-end 200,000
Total liabilities at year-end 120,000

The debt ratio at December 31, 2022 was:

Multiple Choice

A) 60.0%

B) 150.0% - I chose this one based upon debt-ratio calculation atleast I though was correct but marked me wrong.

C) 66.7%

D) 40.0%

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