What do the following data taken from a comparative balance sheet indicate about the companys ability to

Question:

What do the following data taken from a comparative indicate about the company€™s ability to borrow additional funds on a long-term basis in the current year as compared to the preceding year?

Current Year Preceding Year $720,000 Fixed assets (net) Total long-term liabilities $600,000 120,000 180,000

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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