The balance sheet for Capital Ltd reveals total assets of $920 000, total liabilities of $375 000

Question:

The for Capital Ltd reveals total assets of $920 000, total liabilities of $375 000 and equity of $545 000 as at the end of the reporting period. Using this data, the debt ratio is 40.76 per cent, the equity ratio is 59.24 per cent and the debt/equity ratio is 68.81 per cent. Discuss why the inferences from these ratios are consistent, despite the ratio calculations generating different numbers? Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...