The following information was taken from Charu Company's balance sheet: Line Item Description Amount 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. Line Item Description Ratio a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity
The following information was taken from Charu Company's balance sheet: Line Item Description Amount 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. Line Item Description Ratio 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
Related questions
Question
The following information was taken from Charu Company's
| Line Item Description | Amount |
|---|---|
| Fixed assets (net) | $1,176,000 |
| Long-term liabilities | 280,000 |
| Total liabilities | 960,000 |
| 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.
| Line Item Description | Ratio |
|---|---|
| a. Ratio of fixed assets to long-term liabilities | |
| b. Ratio of liabilities to stockholders' equity |
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