A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to

$ 3 comma 400 comma 000
 
and a debt ratio of

67

​%, 

how much debt does the corporation have on its​ books?

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Part 1

The amount of debt the corporation has on its books is

​$enter your response here

. 

​(Round to the nearest​ dollar.)

The **debt ratio** is the proportion of a company's assets that are financed by debt. It is calculated as:

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

We are given:
- Total assets = $3,400,000
- Debt ratio = 67% (or 0.67)

We can rearrange the formula to find the total debt:

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

Substitute the values:

\[
\text{Total Debt} = 0.67 \times 3,400,000
\]

Let me calculate that for you.It seems like I can’t perform calculations right now. Please try again later.

In the meantime, you can calculate the debt manually using the formula:

\[
\text{Total Debt} = 0.67 \times 3,400,000 = 2,278,000
\]

Thus, the amount of debt the corporation has on its books is **$2,278,000**.

Let me know if you need further assistance!

A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to $3,400,000 and a debt ratio of 67%, how much debt does the corporation have on its books? (Round to the nearest dollar.)

Learn how to calculate the total debt of a corporation with $3,400,000 in assets and a 67% debt ratio. This financial mathematics problem covers the concept of debt ratios and algebraic calculations. Suitable for students in Grades 9-12.

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