Selected data for the Dublin Company follow EEB Click the ic

Selected data for the Dublin Company follow EEB (Click the icon to view the data.) Based on these facts, what are Dublin\'s current ratio and debt ratio? (Ratios have been rounded to three decimal places.) Current ratio Debt ratio 0.206 0.614 O A. 1.213 ??. 1.200 O c. 1.6280.614 O D. 9.533 Data Table 0.833 Current assets . Long-term assets Total revenues.. $25,200 Current liabilities....$ 21,000 175,000 Long-term liabilites. 102,000 nses 160,000 Print Done Click to select your answer.

Solution

Current ratio = Current assets/Current liabilities

= 25200/21000 = 1.2

Debt ratio = Total debt/Total assets

Total debt = Long term liabilities + Current liabilities = 102000 + 21000 = 123000

Total assets = Current assets + Long term assets = 25200 + 175000 = 200200

Debt ratio = 123000/200200 = 0.614

Answer is B. 1.200 0.614