The following information was taken from Tristar Companys balance sheet: Fixed assets (net) .... $900,000 Long-term liabilities

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The following information was taken from Tristar Company’s balance sheet:

Fixed assets (net) .... $900,000

Long-term liabilities .... 625,000

Total liabilities ....... 850,000

Total stockholders’ equity . 500,000

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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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Jul 17, 2012 06:51 AM

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The following information was taken from Tristar Companys balance sheet: Fixed assets (net) .... $900,000 Long-term liabilities

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