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-   -   SRC has a debt ratio of .4, current liabilities of $18,000, and total assets of $100, (https://www.askmehelpdesk.com/showthread.php?t=595776)

  • Sep 4, 2011, 12:59 PM
    luvlearning
    SRC has a debt ratio of .4, current liabilities of $18,000, and total assets of $100,
    SRC has a debt ratio of .4, current liabilities of $18,000, and total assets of $100,000. What is the level of SRC's total liabilities?
  • Sep 4, 2011, 02:24 PM
    pready
    Debt ratio is equal to Liabilities divided by Assets. In formula form:
    Debt Ratio = Liabilities/Assets

    Therefore:
    .4 = X / 100,000

    Now you just need to solve for X, where X = total Liabilities

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