We will solve this problem in terms of millions.
The bakery's total assets is 465 million. The total liabilties are 130 million. Plug these values into the debt ratio equation:
[tex] \frac{\text{Total liabilities}}{\text{Total assets}} [/tex]
[tex] \frac{130}{465} [/tex]
We can simplify this fraction by dividing both the numerator and denominator by 5:
[tex] \frac{130}{465} \div \frac{5}{5} = \boxed{\frac{26}{93}} [/tex]
We cannot simplify this fraction any further, as the only common factor between 26 and 93 is 1.
If you want the debt ratio as a percentage, then divide the numerator by the denominator:
[tex] 26 \div 93 = 0.2796 [/tex]
Multiply the decimal by 100 to convert into a percentage:
[tex] 0.2796 \times 100 = \boxed{27.96} [/tex]
The debt ratio is 26/93, or 27.96%.
