The fiscal 2012 financial statements of Barney Services shows average net operating assets (NOA) of $7,416 million, average net nonoperating obligations (NNO) of $456 million, average total liabilities of $3,508 million, and equity of $7,040 million. The company’s 2012 financial leverage (FLEV) is: Choose from list below: 0.179 0.949 0.061 0.065 Solution Financial leverage formual = Average net nonoperating obligation / average equity = 456 / (7416 - 456) = 456 /6960 = .065 correct option is \"D\" -.065 .

1. The fiscal 2012 financial statements of Barney Services shows average net operating assets
(NOA) of $7,416 million, average net nonoperating obligations (NNO) of $456 million, average
total liabilities of $3,508 million, and equity of $7,040 million. The company’s 2012
financial leverage (FLEV) is: Choose from list below:
0.179
0.949
0.061
0.065
0.179
0.949
0.061
0.065
Solution
Financial leverage formual = Average net nonoperating obligation / average equity
= 456 / (7416 - 456)
= 456 /6960
= .065
correct option is "D" -.065