Ratio Analysis Watterson Corporations balance sheet showed t

Ratio Analysis

Watterson Corporation\'s balance sheet showed the following amounts: current liabilities, $70,000; bonds payable, $150,000; and lease obligations, $20,000. Total stockholders\' equity was $90,000.

Required:

Calculate the debt to equity ratio. Round your answer to three decimal places

Debt to equity ratio = Total debt/Total stockholders\' equity = (70000+150000+20000)/90000= 2.667

$Ratio Analysis Watterson Corporation\'s balance sheet showed the following amounts: current liabilities, $70,000; bonds payable, $150,000; and lease obligations$

Ratio Analysis Watterson Corporations balance sheet showed t

Solution

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