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The following selected information pertains to Wilson Company. Current liabilities: $100; long-term liabilities: $150; contributed capital: $120; retained earnings: $50; accumulated other comprehensive income: $20. The company's debt to equity ratio

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hyderali230

Answer:

The company's debt to equity ratio is 1.32

Explanation:

Wilson Company has following

Total Debt = Current liabilities + long-term liabilities

Total Debt = 100 + 150 = $250

Total Capital = Contributed capital + Retained earnings + Accumulated other comprehensive income

Total Capital = 120 + 50 + 20 = 190

Debt to equity Ratio = Total Debt / Shareholders Equity

Debt to equity Ratio = 250 / 190

Debt to equity Ratio = 25 / 19

Debt to equity Ratio = 1.32

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