The following information was taken from Charu Companys balance sheet: Fixed assets (net) .........$2,000,000 Long-term liabilities .......
Question:
The following information was taken from Charu Company’s balance sheet:
Fixed assets (net) .........$2,000,000
Long-term liabilities ....... 800,000
Total liabilities ........ 1,000,000
Total stockholders’ equity .... 625,000
Determine the company’s
(a) Ratio of fixed assets to long-term liabilities.
(b) Ratio of liabilities to stockholders’equity.
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Related Book For 
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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