Question

Using the following balance sheet and income statement data, what percent of assets was financed by the creditors? Current assets $ 21,000Net income $ 45,000 Current liabilities 12,000 Stockholders’ equity 63,000 Average assets 132,000 Total liabilities 27,000 Total assets 90,000 Average common shares outstanding was 15,000.

Answer 1

Answer:

30%

Explanation:

Creditors are the persons or entities the company has a liability.

They comprise the Total Liabilities of the company.

In order to know what percent of the total assets was financed by the creditors, just simply do "Total Liabilities" divided by "Total Assets".

So it would look like this:

$27,000 / 90,000 = 30%

This means that 30% of the assets are financed by the creditors.