8 Orem Corporations current liabilities are 67980 its longte

8 Orem Corporation\'s current liabilities are $67,980, its long-term liabilities are $308,220, and its working capital is $95,200. If the corporation\'s debt-to-equity ratio is 0.11, total long-term assets must equal: 03:03:29 Multiple Choice $3,015,020 $3,701,000 3,633,020 $3,420,000

Solution

Debt to equity ratio = Total debt/Total equity

0.11 = (67980+308220)/X

Total equity = 3420000

Long term assets = Total assets-current assets

= (67980+308220+3420000)-(67980+95200)

Long term assets = 36,33,020

so answer is c) $3,633,020