Concept #1: Ratios: Debt to Equity Ratio

Practice: On its December 31 balance sheet, XYZ Company reported total assets of $880,000 and total liabilities of $560,000. What is the company’s debt to equity ratio?

Practice: At the beginning of the year, ABC Company had total assets of $600,000, Total Liabilities of $360,000, and Total Equity of $240,000. At the end of the year, total assets had increased to $800,000, Total Liabilities decreased to $320,000 and Total Equity increased to $480,000. What was the change in the company’s debt to equity ratio during the year?

Consider the following information:
Compute the receivable turnover to the nearest hundredth.
A. 11.43
B. 8.57
C. 11.23
D. 8.42

Consider the following information:
Compute the debt-to- equity ratio to the nearest hundredth.
A. 0.53
B. 0.57
C. 0.46
D. 0.67

The debt-to-equity ratio is 6.0. If total equity is $10,000, what is the amount of total liabilities?
a. $600,000
b. $6,000
c. $100,000
d. $60,000
e. None of the above