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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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