Below are taken from the December 31 Balance Sheet of Mr. Smith. Assets: Current assets Fixed...

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Below are taken from the December 31 Balance Sheet of Mr. Smith. Assets: Current assets Fixed assets (net) Total assets Liabilities: Current liabilities Long-term liabilities Total liabilities Stockholders' equity Total liabilities and stockholders' equity 2021 P 825,500 1,473,600 P 674,300 1,275,300 P2,299,100 P1,949,600 P 313,500 703,000 2020 P2,299,100 P1,016,500 P1,282,600 P1,095,000 (a) Determine the ratio of fixed assets to long-term liabilities for 2021 and 2020. (b) Determine the ratio of liabilities to stockholders' equity for 2021 and 2020. (c) Comment on the year-to-year changes for both ratios. P 309,600 545,000 P 854,600 P1,949,600 Below are taken from the December 31 Balance Sheet of Mr. Smith. Assets: Current assets Fixed assets (net) Total assets Liabilities: Current liabilities Long-term liabilities Total liabilities Stockholders' equity Total liabilities and stockholders' equity 2021 P 825,500 1,473,600 P 674,300 1,275,300 P2,299,100 P1,949,600 P 313,500 703,000 2020 P2,299,100 P1,016,500 P1,282,600 P1,095,000 (a) Determine the ratio of fixed assets to long-term liabilities for 2021 and 2020. (b) Determine the ratio of liabilities to stockholders' equity for 2021 and 2020. (c) Comment on the year-to-year changes for both ratios. P 309,600 545,000 P 854,600 P1,949,600

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Lets calculate the ratios and then comment on the yeartoyear changes for each a Ratio of Fixed Asset... View the full answer