John Davis has a debt ratio of 0.25, which tells us that John

A)

is insolvent since the ratio is less than 1.0.
B)

could have $10,000 in total assets and $7,500 in net worth.
C)

has 25% of his income allocated to reducing debt.
D)

might have $2,500 in liquid assets and $10,000 in current debts.

B