Dept 22,500 securities 15,000 Capital 7,500

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 5MC: Calculate the projected debt ratio, debt-to-equity ratio, liabilities-to-assets ratio,...
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KLMN has the following T account:

 

Assets   Liabilities  
Reserves 30,000 Deposits 120,000
Loans 105,000 Dept 22,500
securities 15,000 Capital 7,500

 

Based on the T account, calculate KLMN's leverage ratio. Interpret your result.

 

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