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4 September, 08:48

The 2012 financial statements of Marker Co. contain the following selected data (in millions).

Current Assets $ 75

Total Assets 140

Current Liabilities 40

Total Liabilities 95

Cash 8

The debt to total assets ratio is:

a. 67.9%.

b. 96.4%.

c. 28.6%.

d. 256%

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Answers (1)
  1. 4 September, 11:51
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    a. 67.9%.

    Explanation:

    Debt to Total Assets Ratio = Total Liabilities / Total Assets x 100

    Total Liabilities = $95,000,000

    Total Assets = $140,000,000

    Debt to Total Assets Ratio = $95,000,000 / $140,000,000 x 100

    Debt to Total Assets Ratio = 0.679 x 100

    or

    Debt to Total Assets Ratio = 67.9%

    Hence, The Assets of Marker Co. are 67.9% funded by creditors.
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