Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity.
Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.9P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Question
Long-Term Solvency Analysis
The following information was taken from Celebrate Company's balance sheet:
| Fixed assets (net) | $774,300 |
| Long-term liabilities | 267,000 |
| Total liabilities | 280,350 |
| Total |
934,500 |
Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place.
| a. Ratio of fixed assets to long-term liabilities | fill in the blank 1 |
| b. Ratio of liabilities to stockholders' equity | fill in the blank 2 |
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