Go to the web site of the American Cancer Society and look a

Go to the web site of the American Cancer Society and look at their 2014 financial statements.

http://www.cancer.org/aboutus/whoweare/financialinformation/combinedfinancialstatements/2014-combined-financial-statements

1) Calculate their capital structure ratio (i.e., total liabilities divided by total assets).

Solution

Debt to asset ratio shows the proportion of a company\'s assets which are financed through debt.

Calculation of Capital structure ratio / Debt to asset ratio:

Debt to asset ratio = Total liabilities ÷ Total assets

Total liabilities on December 31, 2014 = $1,893,983,000

Total Assets on December 31, 2014 = $680,571,000

Therefore, Debt to asset ratio = $680,571,000 ÷ $1,893,983,000 = 0.36 times or 36%

Go to the web site of the American Cancer Society and look at their 2014 financial statements. http://www.cancer.org/aboutus/whoweare/financialinformation/combi

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