Chestnut, Inc., had the following balances on its 12/31/16 balance sheet, before buying land. Total assets $242,000 Total liabilities $74,000 Common Stock $86,000 Retained Earnings 82,000 Total equity 168,000 Total liabilities and equity $242,000 If Chestnut were to purchase land for $46,000 on credit under an agreement to pay for the land in one year, what would be its debt-to-assets ratio immediately after the purchase?

Answer rating: 100% (QA)

Debt to asset ratio total debt total assets total debt previous total liabilit... View the full answer