7 Portland Concrete Incs recent balance sheet reports total

7. Portland Concrete Inc.\'s recent balance sheet reports total assets of $30,000,000, total liabilities of $12,000,000 and total stockholder\'s equity of $18,000,000. The debt to equity ratio for the period is (rounded to two decimals): A. 0.60 B. 2.25 C. 0.67 D. 1.67 E. 1.50

Solution

As per chegg guidelines when there are more than one question then we have to answer first question:

7) Calculation of debt to equity ratio:

Debt to equity ratio= Total liabilities/ total shareholders equity

                           =1200000/1800000= 0.67

So correct answer is C) 0.67