The total debt to total assets of cypress corporation was 0.71. The total of cypress’s assets was $270,000. What’s the amount of total debt?

The total debt to total assets ratio is given by:

\[
\text{Total Debt to Total Assets} = \frac{\text{Total Debt}}{\text{Total Assets}}
\]

For Cypress Corporation:
- Total debt to total assets ratio = 0.71
- Total assets = $270,000

Rearranging the formula to find the total debt:

\[
\text{Total Debt} = \text{Total Debt to Total Assets Ratio} \times \text{Total Assets}
\]

\[
\text{Total Debt} = 0.71 \times 270,000
\]

\[
\text{Total Debt} = 191,700
\]

Thus, the total debt of Cypress Corporation is **$191,700**.

Would you like further details, or do you have any questions?

Here are some related questions:
1. How would changes in total assets affect the debt if the ratio remains the same?
2. What is the equity if the total assets and debt are known?
3. How does a higher debt-to-asset ratio affect a company's financial stability?
4. How can Cypress reduce its debt-to-asset ratio?
5. What is the significance of maintaining a low debt-to-asset ratio?

**Tip:** Understanding financial ratios, like debt-to-asset, is essential for analyzing a company's financial health and stability.

The total debt to total assets of Cypress Corporation was 0.71. The total of Cypress’s assets was $270,000. What’s the amount of total debt?

Find out how to calculate the total debt for Cypress Corporation, given a debt-to-asset ratio of 0.71 and total assets of $270,000. This solution uses financial ratio concepts, showing key steps and formulas relevant for high school finance and algebra students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation