The following information was taken from Charu Company s balance sheet
The following information was taken from Charu Company’s balance sheet:
Fixed assets (net) ......... $2,000,000
Long-term liabilities ....... 800,000
Total liabilities ........ 1,000,000
Total stockholders’ equity .... 625,000
Determine the company’s
(a) Ratio of fixed assets to long-term liabilities.
(b) Ratio of liabilities to stockholders’equity.
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