Long-Term Solvency Analysis The following information was taken from Charu Company's balance sheet: Fixed assets (net) $910,000 Long-term liabilities 260,000 Total liabilities 800,000 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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Chapter1: Financial Statements And Business Decisions
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Long-Term Solvency Analysis

The following information was taken from Charu Company's balance sheet:

Fixed assets (net) $910,000
Long-term liabilities 260,000
Total liabilities 800,000
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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