Acme Inc. has total liabilities of $120,000, total sales of $80,000, net income of $12,000, current assets of $90,000 and total assets of $150,000. What is the debt to equity ratio for Ac

The debt to equity ratio is calculated by dividing the total liabilities by the shareholders' equity. To find the debt to equity ratio for Acme Inc., we need to calculate the shareholders' equity.

Shareholders' equity can be calculated by subtracting the total liabilities from the total assets.

Shareholders' equity = Total assets - Total liabilities

Given that the total liabilities are $120,000 and the total assets are $150,000, we can calculate the shareholders' equity:

Shareholders' equity = $150,000 - $120,000 = $30,000

Now that we have the shareholders' equity, we can calculate the debt to equity ratio:

Debt to Equity Ratio = Total liabilities / Shareholders' equity

Debt to Equity Ratio = $120,000 / $30,000 = 4

Therefore, the debt to equity ratio for Acme Inc. is 4.