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Presented below is selected data from the financial statements of Morgan Corporation for the current and priof year. 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 S1,950,000 Current liabilities $210,000 $180,000 $1,210,000 $1,180,000 Total liabilities Total stockholders' equity $1,290,000 S770,000 Net sales $4,800,000 $3,900,000 $3,200,000 $2.690,000 Cost of Goods Sold Wages expense $973,000 S869.000 $60.000 $50,000 Supplies expense Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 S520,000 $250,000 Net income Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign.

Presented below is selected data from the financial statements of Morgan Corporation for the current and priof year. 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 S1,950,000 Current liabilities $210,000 $180,000 $1,210,000 $1,180,000 Total liabilities Total stockholders' equity $1,290,000 S770,000 Net sales $4,800,000 $3,900,000 $3,200,000 $2.690,000 Cost of Goods Sold Wages expense $973,000 S869.000 $60.000 $50,000 Supplies expense Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 S520,000 $250,000 Net income Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year: 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 $1,950,000 Current liabilities $210,000 $180,000 Total liabilities $1,210,000 $1,180,000 Total stockholders' equity $1,290,000 S770,000 $4,800,000 $3,900,000 Net sales Cost of Goods Sold $3,200,000 $2,690,000 Wages expense $973,000 $869,000 Supplics expense $60,000 $50,000 Depreciation expense $35,000 $32,000 $12,000 $9,000 Interest expense $520,000 $250.000 Net income Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign.
Transcribed Image Text:Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year: 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 $1,950,000 Current liabilities $210,000 $180,000 Total liabilities $1,210,000 $1,180,000 Total stockholders' equity $1,290,000 S770,000 $4,800,000 $3,900,000 Net sales Cost of Goods Sold $3,200,000 $2,690,000 Wages expense $973,000 $869,000 Supplics expense $60,000 $50,000 Depreciation expense $35,000 $32,000 $12,000 $9,000 Interest expense $520,000 $250.000 Net income Calculate the debt ratio for 20X2. Calculate the Debt Ratio as a percentage and round to the nearest whole percent. DO NOT enter your answer as a decimal and DO NOT include the % sign.
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Step 1 Introduction

The debt ratio is a financial ratio that tells about the percentage of total assets of company with respect to debt. It is calculated as ratio total debt and total assets.

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