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Here are key figures from the balance sheet of Rome, Inc., at the end of 2014 (amounts in
thousands): Rome's debt ratio at the end of 2014 is (all amounts are rounded)
Solution
Debt ratio = total debt/total assets
total debt = current liabilities+long term debt
total assets = current assets+fixed assets+intangible assets
total debt = 600 (current liabilities) +1400 (bonds payable) = 2,000
total assets = 7,000
debt ratio = 2,000/7,000 = 28.57% or 29%

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Here are key figures from the balance sheet of Rome, Inc., at the.pdf

  • 1. Here are key figures from the balance sheet of Rome, Inc., at the end of 2014 (amounts in thousands): Rome's debt ratio at the end of 2014 is (all amounts are rounded) Solution Debt ratio = total debt/total assets total debt = current liabilities+long term debt total assets = current assets+fixed assets+intangible assets total debt = 600 (current liabilities) +1400 (bonds payable) = 2,000 total assets = 7,000 debt ratio = 2,000/7,000 = 28.57% or 29%