The following information was taken from Charu Company's balance sheet: Dollar Fixed assets (net) 860,000 Long-term liabilities 200,000 Total liabilities 600,000 Total stockholders' equity 250,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 6BE
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The following information was taken from charu company's balance sheet:

The following information was taken from Charu Company's balance sheet:
Dollar
Fixed assets (net)
860,000
Long-term liabilities
200,000
Total liabilities
600,000
Total stockholders' equity 250,000
Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio
of liabilities to stockholders' equity.
Transcribed Image Text:The following information was taken from Charu Company's balance sheet: Dollar Fixed assets (net) 860,000 Long-term liabilities 200,000 Total liabilities 600,000 Total stockholders' equity 250,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity.
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