The following information was taken from Straub Companys balance sheet: Fixed assets (net) ..... $700,000 Long-term liabilities

Question:

The following information was taken from Straub Company’s balance sheet:
Fixed assets (net) ..... $700,000
Long-term liabilities ... 218,750
Total liabilities ...... 235,000
Total stockholders’ equity . 940,000

Determine the company’s
(a) Ratio of fixed assets to long-term liabilities and
(b) Ratio of liabilities to stockholders’ equity.