Ask Question
BusinessBusiness
10 July, 09:57

On December 31, 2018, a company had assets of $28 billion and stockholders' equity of $20 billion. That same company had assets of $56 billion and stockholders' equity of $18 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $21 billion and total expenses of $19 billion. What is the company's debt-to-assets ratio on December 31, 2019

+4
Answers (1)
  1. 10 July, 13:14
    0
    Answer: 0.68

    Explanation:

    The Debt-to-Assets ratio is a leverage ratio in financial Analysis that is intended to show how much of the company's assets are funded by debt.

    It is calculated by dividing the Company's entire debt by it's Total Assets.

    We have the Assets as at the 31st of December 2019 as well as the Equity. Now we need to find debt.

    Remember the Accounting Equation,

    Assets = Equity + Liability

    So,

    Liability = Assets - Equity

    = 56 billion - 18 billion

    = $38 billion.

    Using the Debt-to-Assets ratio formula then we have,

    = Debt / Assets

    = 38/56

    = 0.67857142857

    = 0.68

    0.68 is the company's debt-to-assets ratio on December 31, 2019.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On December 31, 2018, a company had assets of $28 billion and stockholders' equity of $20 billion. That same company had assets of $56 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Four years ago, Company PJ acquired 1,000 acres of undeveloped land. On the date of the exchange, the land's FMV was $700,000. During the past four years, the land appreciated in value. by $600,000; a recent appraisal indicated that it is worth $1.
Answers (1)
A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of 1,000 units, an annual carrying cost of $10 per unit, and a setup cost of $400.
Answers (1)
You had a part time job that paid you $2,650 in one tax year. Do you have to file a federal tax return?
Answers (1)
Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $180,000 with terms of 5/15, n/45. Payment was made within the discount period. Shipping costs were $4,600, which included $200 for insurance in transit.
Answers (1)
Gulf stream name when it crosses the atlantic
Answers (1)
New Questions in Business
Imagine the market demand and supply for chicken is such that Qd = 2,000 - 300P and Qs = 800 + 200P. To aid chicken producers, the U. S. government agrees to put a price support on chickens of $3.00 per unit.
Answers (1)
If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the following financial areas? international financeprivate placementscorporate financecapital managementinvestments
Answers (1)
On January 1, a company issues bonds dated January 1 with a par value of $310,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31.
Answers (1)
Aves Treats, Inc. produces bird seeds. All direct materials used in the production process are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is mixed and packaged.
Answers (1)
Employees earn vacation pay at the rate of one day per month. during the month of july, 32 employees qualify for one vacation day each. their average daily wage is $107 per day.
Answers (1)
Home » Business » On December 31, 2018, a company had assets of $28 billion and stockholders' equity of $20 billion. That same company had assets of $56 billion and stockholders' equity of $18 billion as of December 31, 2019.
Sign Up Forgot Password?