Long-term solvency analysis The following information was taken from Charu Company's balance sheet: Fixed assets (net) $1,176,000 Long-term liabilities 280,000 Total liabilities 960,000 Total stockholders' equity 320,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity

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Long-term solvency analysis
The following information was taken from Charu Company's balance sheet:
Fixed assets (net)
Long-term liabilities
$1,176,000
280,000
Total liabilities
960,000
Total stockholders' equity
320,000
Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one
decimal place.
a. Ratio of fixed assets to long-term liabilities
b. Ratio of liabilities to stockholders' equity
Transcribed Image Text:Show Me How Long-term solvency analysis The following information was taken from Charu Company's balance sheet: Fixed assets (net) Long-term liabilities $1,176,000 280,000 Total liabilities 960,000 Total stockholders' equity 320,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity
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