The following information was taken from Shield Companys balance sheet: Fixed assets (net) $1,000,000 Long-term liabilities 500,000

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

Fixed assets (net) $1,000,000
Long-term liabilities 500,000
Total liabilities 800,000
Total stockholders’ equity 800,000

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

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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