The following information was taken from Sigmund Company’s balance sheet:Fixed assets (net) $1,050,000Long-term liabilities 750,000Total liabilities 850,000Total stockholders’ equity 500,000Determine the company’s (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders’ equity. Round to one decimal place.
The following information was taken from Sigmund Company’s balance sheet:Fixed assets (net) $1,050,000Long-term liabilities 750,000Total liabilities 850,000Total stockholders’ equity 500,000Determine the company’s (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders’ equity. Round to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information was taken from Sigmund Company’s balance sheet:
Fixed assets (net) $1,050,000
Long-term liabilities 750,000
Total liabilities 850,000
Total
Determine the company’s (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders’ equity. Round to one decimal place.
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