The following information was taken from the balance sheet of Laribee Company (amounts are in thousands of

Question:

The following information was taken from the of Laribee Company (amounts are in thousands of dollars):
Current liabilities* ............................ $ 24,480
Long-term debt ................................ 73,440
Common stock, .................... 61,200
Paid-in capital ................................. 15,300
Retained earnings ............................. 70,380
$244,800
*Includes $6,120 current portion of long-term debt.
Required:
a. Calculate the debt/equity and debt/capitalization ratios.
b. What do these ratios measure?
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