The balance sheet for Capital Ltd reveals total assets of $840,000, total liabilities of $460,000 and equity
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The balance sheet for Capital Ltd reveals total assets of $840,000, total liabilities of $460,000 and equity of $380,000 as at the end of the reporting period. Using this data, calculate the debt ratio, equity ratio and debt to equity ratio. Discuss why the conclusions drawn from these ratios are consistent, despite the ratio calculations generating different numbers.
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It is because the ratio calculations are based on different information about the business In thi...View the full answer
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Related Book For 
Accounting Business Reporting For Decision Making
ISBN: 9780730363415
6th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver
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