Mitchell Florists & Co. reported assets of $1,000 and equity of $450. What is its debt ratio? (Round your percentage answer to two decimal places.)
A) 55.00%
B) 45.00%
C) 100.00%
D) 60.00%
A .Total liabilities = $1,000 âˆ' $450 = $550
Debt ratio = Total liabilities / Total assets
Debt ratio = $550 / $1,000 = 0.55 or 55.00%
Business
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