Question
Sports and More lnc. has total assets of
Select one:
a.
b. 1.29 .1
c.
d.
Select one:
a.
b. 1.29 .1
c.
d.
Ask by John Pearson. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The debt-to-assets ratio is approximately
Solution
We are given:
- Total assets:
- Total liabilities:
The debt-to-assets ratio is computed as follows:
Dividing, we have:
Rounded to the nearest hundredth, this ratio is:
Thus, the correct choice is the option that reflects a ratio of approximately
Answered by UpStudy AI and reviewed by a Professional Tutor
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Explain 
Simplify this solution Beyond the Answer
To find the debt-to-assets ratio, you can use the formula:
Plugging in the values:
Rounding to the nearest hundredth, the ratio is approximately
So the correct answer is:
c.
c.
Remember to always double-check your calculations, especially when it comes to financial ratios! A little slip can lead you astray. Also, don’t forget to clearly understand which ratio you’re computing; knowing the definitions can save you from common mistakes!
