Question

Birtle Corporation reports the following statement of financial position information for 2017 and 2018.  

BIRTLE CORPORATION 2017 and 2018 Statement of Financial Position
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	9,279			$	11,173			Accounts payable	$	41,060			$	43,805
Accounts receivable		23,683				25,760			Notes payable		16,157				16,843
Inventory		42,636				46,915
Total	$	75,598			$	83,848			Total	$	57,217			$	60,648
									Long-term debt	$	40,000			$	35,000
Fixed assets									Owners’ equity
Net plant and equipment	$	272,047			$	297,967			Common stock and paid-in surplus	$	50,000			$	50,000
									Retained earnings		200,428				236,167
									Total	$	250,428			$	286,167
Total assets	$	347,645			$	381,815			Total liabilities and owners’ equity	$	347,645			$	381,815

Based on the statement of financial position given for Birtle:

f. Calculate the total debt ratio and long-term debt ratio for each year. (Round the final answers to 3 decimal places.)

	2017			2018
Total debt ratio		times			times
Long-term debt ratio		times			times

Answer 1

	2017	2018
Current liabilities	57,217	60,648
Long term debt	40,000	35,000
Total liabilities (Current liabilities + Long term debt)	97,217	95,648
Total assets	347,645	381,815
Total debt ratio ( Total liabilities/Total assets)	0.280	0.251

	2017	2018
Long term debt	40,000	35,000
Total assets	347,645	381,815
Long-term debt ratio (Long term debt / Total assets)	0.115	0.092

	2017	2018
Total debt ratio ( Total liabilities/Total assets)	0.280 times	0.251 times
Long-term debt ratio (Long term debt / Total assets)	0.115 times	0.092 times

Kindly comment if you need further assistance.

Thanks‼!