Given the following information, what is the ratio of liabilities to stockholders’ equity?
Given the following information, what is the ratio of liabilities to stockholders’ equity?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Given the following information, what is the ratio of liabilities to

Transcribed Image Text:Fixed assets (net) at year-end
Average fixed assets
Total assets
$420,000
470,000
520,000
Long-term liabilities
310,000
Total liabilities
360,000
Total stockholders' equity
200,000
Total liabilities and stockholders' equity 560,000
Interest expense
5,000
Income before income tax
230,000
Net income
180,000
O a. 1.6
O b. 2.6
c. 2.4
O d. 1.8
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