The liabilities and owners' equity for Campbell Industries is found here: Accounts payable $539,000 Notes payable $241,000
Question:
The liabilities and owners' equity for Campbell Industries is found here:
Accounts payable | $539,000 |
|---|---|
Notes payable | $241,000 |
Current liabilities | $780,000 |
Long-term debt | $1,149,000 |
Common equity | $4,620,000 |
Total liabilities and equity | $6,549,000 |
.
a. What percentage of the firm's assets does the firm finance using debt (liabilities)?
b. If Campbell purchased a new warehouse for $1.2 million and financed it entirely with long-term debt, what would be the firm's new debt ratio?
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.)
Expert Answer:
To calculate the percentage of the firms assets that the firm finances using debt liabilities we nee... View the full answer
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
