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Homework answers / question archive / A balance sheet balances assets with their sources of debt and equity financing
A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to $6,100,000 and a debt ratio of 44%, how much debt does the corporation have on its books? The amount of debt the corporation has on its books is (Round to the nearest dollar.)
Debt ratio = Amount of debt/Total asset
Debt ratio = 44%
Amount of debt = ?
Total asset = $ 6,100,000
Thus 44% = Amount of debt/6100000
Amount of debt = 6100000 x 44%
= 2,684,000 $
Thus Amount of debt corporation has on it's books is $2684000
