Question: What do the following data taken from a comparative balance sheet indicate about the company's ability to borrow additional funds on a long-term basis in

What do the following data taken from a comparative indicate about the company's ability to borrow additional funds on a long-term basis in the current year as compared to the preceding year?
_____________________________Current Year _____Preceding Year
Fixed assets (net) ....................... $1,800,000 ........... $1,260,000
Total long-term liabilities ............... 450,000 ................ 350,000

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