The following information was taken from Chaff Companys balance sheet: Fixed assets (net).............$1,000,000 Long-term liabilities........... 625,000 Total
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Fixed assets (net).............$1,000,000
Long-term liabilities........... 625,000
Total liabilities............. 840,000
Total stockholders’ equity......... 600,000
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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Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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