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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Long-Term Solvency Analysis
The following information was taken from Charu Company's
| Fixed assets (net) | $910,000 |
| Long-term liabilities | 260,000 |
| Total liabilities | 800,000 |
| Total |
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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