A company's balance sheet showed the following amounts for liabilities and stockholders' equity ac-counts: Current Liabilities, $50,000;

Question:

A company's showed the following amounts for liabilities and stockholders' equity ac-counts: Current Liabilities, $50,000; Bonds Payable, $600,000; Capital Lease Obligations, $120,000; and Deferred Income Tax Liability, $20,000. Total stockholders' equity was $520,000. What is the debt-to-equity ratio?
a. 0.66
b. 0.70
c. 1.42
d. 1.52
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...