11. the year end balance sheet of ultimate medical center show total liabilities of $5,000,000, which includes a loan to expand services. net worth at the balance sheet date was $ 4,000,000. calculate the debt-to-worth ratio.

Given is:

The total liabilities are $5,000,000 including a loan to expand services.

Net worth at the balance sheet date is given $ 4,000,000.

Hence out of $5,000,000 , $ 4,000,000 is capital and remaining $1,000,000 is loan

Debts to net worth ratio is =

= 0.25 or 25%

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