A company has total assets of $1,000, current liabilities of $130, and total liabilities of $350. if debt is the only long-term liability, what is the long-term debt ratio?
long-term debt=Totol liability-Current liability
long-term debt=$350-$130
=$220
long-term debt ratio=long term debt/ total assets
=$220/$1,000
=22%
so long term debt ratio is 22%
