nathan579
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( WILL GIVE BRAINLIEST!!!) Type the correct answer in the box. Spell all words correctly.
The following is the extract of a balance sheet of Creatz Ltd. for a given year:
Current Liabilities
3,500
Long term Liabilities 7,500
Stockholder's equity 10,000
Retained earnings
2,000
What is the debt-equity ratio of Creatz Ltd.?
The debt-equity ratio of Creatz Ltd. Is
(correct to 2 decimal places).

( WILL GIVE BRAINLIEST!!!) Type the correct answer in the box. Spell all words correctly. The following is the extract of a balance sheet of Creatz Ltd. for a g class=

Answer :

Samawati

Answer:

0.90

Explanation:

The debt to equity ratio is a type of leverage ratio. It is also known as a risk ratio. It is calculated using the formula below.

Debt to Equity Ratio=Total Shareholders Equity/ Total Liabilities​​.

Shareholders' equity is comprised of retained earnings, share capital, income, and dividends.

Total liabilities are the current liabilities plus long term liabilities.

For Creatz Ltd, Total liabilities are $3500 + $7500= $11,000

Shareholders is $10,000

debt to equity ration

= $10,000/$11,000

=0.90

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