Consider this simplified balance sheet for Geomorph Tradin $ 60 280 70 190 S 600

Question

Consider this simplified balance sheet for Geomorph Tradin $ 60 280 70 190 S 600 100 Current liabilities Current assets Long-term assets 500 Long-term debt Other liabilities Equity $600 a. What is the company's debt-equity ratio? (Round your answer to 2 decimal places.) Answer is complete and correct Debt-equity ratio 2.16 b. What is the ratio of long-term debt to total long-term capital? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct Long-term debt-to-capital ratio 470.00

Explanation / Answer

Answer:

Part b.

Long term debt to total long term capital ratio:

Long term debt = $280

Total long term capital = $280 + $190 = $470

RATIO = $280/$470 = 0.60 :1

Part d.

Current ratio = Current assets/Current laiblities

= $100/$60

= 1.67 :1

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