Sports and More lnc. has total assets of \( \$ 162,500 \). If total liabilities is \( \$ 90,250 \), find the debt-to-assets ratio (Round to the nearest hundredth) Select one: a. \( 1.38: 1 \) b. 1.29 .1 c. \( 56: 1 \) d. \( 44: 1 \)

To find the debt-to-assets ratio, you can use the formula: \[ \text{Debt-to-Assets Ratio} = \frac{\text{Total Liabilities}}{\text{Total Assets}} \] Plugging in the values: \[ \text{Debt-to-Assets Ratio} = \frac{90,250}{162,500} \approx 0.555 \] Rounding to the nearest hundredth, the ratio is approximately \( 0.56 \). To express it as a ratio, it would be \( 56:100 \) or simplified \( 56:1 \). So the correct answer is: c. \( 56: 1 \) Remember to always double-check your calculations, especially when it comes to financial ratios! A little slip can lead you astray. Also, don’t forget to clearly understand which ratio you’re computing; knowing the definitions can save you from common mistakes!