What is the specifically requested solvency ratio for firm

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Question - What is the solvency ratio (long term liabilities/owner's equity) for the firm with the following data?

Returns and allowances: $25,000

Net worth: $75,000

A/P: $50,000

A/R: $25,000

Profit before taxes: $50,000

Sales: $500,000

Bank loan: $75,000

Current bills: $25,000

Cash: $50,000

Profit after taxes: $40,000

What is the specifically requested solvency ratio for this firm?

Reference no: EM133026737

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