Consider this simplified balance sheet for Geomorph Trading: Current assets $ 120 Current liabilities $ 70 Long-term assets 520 Long-term debt 270 Other liabilities 90 Equity 210 $ 640 $ 640 Required: What is the company’s debt-equity ratio? Note: Round your answer to 2 decimal places.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 6BE
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Consider this simplified balance sheet for Geomorph Trading:

Current assets $ 120 Current liabilities $ 70
Long-term assets 520 Long-term debt 270
    Other liabilities 90
    Equity 210
  $ 640   $ 640

Required:

  1. What is the company’s debt-equity ratio?

    Note: Round your answer to 2 decimal places.

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