The following information was taken from Charu Companys balance sheet: Fixed assets (net) .........................................$910,000 Long-term liabilities ......................................260,000

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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. Round to one decimal place.

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Related Book For  book-img-for-question

Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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