Question: Accounts payable $450,000 Notes payable $252,000 Current liabilities $702,000 Long-term debt $1,100,000 Common equity $5,074,000 Total liabilities and equity $6,876,000 (Related to Checkpoint 4.2) (Capital

Accounts payable $450,000 Notes payable $252,000 Current liabilities $702,000 Long-term debt $1,100,000 Common equity $5,074,000 Total liabilities and equity $6,876,000

(Related to Checkpoint 4.2) (Capital structure analysis)The liabilities and owners' equity for Campbell Industries is found here:

a.What percentage of the firm's assets does the firm finance using debt (liabilities)?

b.If Campbell were to purchase a new warehouse for

$1.5

million and finance it entirely with long-term debt, what would be the firm's new debt ratio?

Question content area bottom

Part 1

a.What percentage of the firm's assets does the firm finance using debt (liabilities)?

The fraction of the firm's assets that the firm finances using debt is

enter your response here%.

(Round to one decimal place.)

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