Financial data for company-what is the debt ratio

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Reference no: EM131339073

You are given the following financial data for company A: Cash =$5,000; inventories = $1,000; account receivable = $700; othercurrent assets = $500; long term assets = $1,000; accounts payable= $800; other current liabilities = $4,000; long term liabilities =$1,000; net income = $1,200; total revenue = $8,000; EBIT = $3,000;interest income = $400; and interest expense = $600. What is the debt ratio?

A: 75.7%

B: 70.7%

C: 85.7%

D: 80.7%

Reference no: EM131339073

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