The following information was taken from Grain Companys balance sheet: Fixed assets (net) $600,000 Long-term liabilities 400,000

Question:

The following information was taken from Grain Company’s balance sheet:

Fixed assets (net) $600,000
Long-term liabilities 400,000
Total liabilities 600,000
Total stockholders’ equity 400,000

Determine the company’s
(a) Ratio of fixed assets to long-term liabilities and
(b) Ratio of liabilities to stockholders’ equity.