Corporation has the following data as of December 31, 2018: Total Current Liabilities $38,420 Total Stockholders' Equity$ ?
Total Current Assets 62,100 Other Assets 36,800
Long-term Liabilities 179,530 Property, Plant, and Equipment, Net 264,350
Compute the debt to equity ratio at December 31, 2018. (Round your answer to two decimal places, X XX)
Total liabilities Total stockholders' equity Debt to equity ratio

1.5

Explanation:

The debt to equity ratio will be calculated as total liabilities divided by the total equities.

The total liabilities is the sum of the total current liabilities and the long term liabilities. This will be:

= 38420 + 179,530

= $217950

Total equities will be the difference between the total assets and total liabilities. This will be:

Total asset = 264,350 + 36,800 + 62,100

= $363,250

Total equity = total asset - total liability

= $363,250 - $217,950

= $145,300

Debt to equity ratio = total liabilities/total equity

= 217950/145,300

= 1.5