Question: Accounts payable $454,000 Notes payable $246,000 Current liabilities $700,000 Long-term debt $1,136,000 Common equity $5,261,000 Total liabilities and equity $7,097,000 (Related to Checkpoint 4.2) (Capital

Accounts payable $454,000 Notes payable $246,000 Current liabilities $700,000 Long-term debt $1,136,000 Common equity $5,261,000 Total liabilities and equity $7,097,000

(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 $ 1.2 million and finance it entirely with long-term debt, what would be the firm's new debt ratio?

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