What is the debt-to-net-worth ratio, Accounting Basics

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What is the debt-to-net-worth ratio

Question: The year-end balance sheet of Dr. Kopper's dental organization shows total liabilities of $500,000, including a bank note to expand the dental offices within the organization by five offices. Net worth of the dental organization is $1,000,000. What is the debt-to-net-worth ratio? a. 0.35 b. 0.20 c. 0.75 d. 0.50

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Accounting Basics: What is the debt-to-net-worth ratio

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