The statement of financial position for Works Ltd reveals total assets of $420000, total liabilities of $230000
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The statement of financial position for Works Ltd reveals total assets of $420000, total liabilities of $230000 and equity of $190000 as at the end of the reporting period. Using these 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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Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
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