Using the following financial information, this firm's total debt to total capital ratio is closest to:Cash$ 10,000Accounts payable$ 30,000Accounts receivables 50,000Notes payable 20,000Inventories 150,000Total current liabilities$ 50,000Total current assets$210,000Long-term debt 50,000Net fixed assets 90,000Common equity 200,000Total assets$300,000Total liabilities & equity$300,000 Question 35 options: 8% 17% 67% 26%

Total D/C ratio is 26%. Here is the working shown below:

Answered: Using the following financial…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 49E

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Using the following financial information, this firm's total debt to total capital ratio is closest to:

Cash	$ 10,000	Accounts payable	$ 30,000
Accounts receivables	50,000	Notes payable	20,000
Inventories	150,000	Total current liabilities	$ 50,000
Total current assets	$210,000	Long-term debt	50,000
Net fixed assets	90,000	Common equity	200,000
Total assets	$300,000	Total liabilities & equity	$300,000

Question 35 options:

	8%
	17%
	67%
	26%

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