Calculate abc companys debt-to-equity ratio at january 31


Problem

At January 1, 2019 ABC Company reported assets of $647,000; liabilities of $449,000; and equity of $198,000. During January, ABC Company recorded the following transactions:

a. The company purchased inventory on account. The cost of the inventory was $35,000.

b. ABC received $40,000 from a customer for services to be performed at a later date.

c. ABC paid its stockholders a dividend totaling $6,000.

d. ABC performed 20% of the services for the customer from transaction (b).

Calculate ABC Company's debt-to-equity ratio at January 31. Enter your answer as a number with two places after the decimal point (i.e., 6.78).

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Accounting Basics: Calculate abc companys debt-to-equity ratio at january 31
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