Determine ratio of liabilities to stockholders equity

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Problem - The following information was taken from Kellman Company's balance sheet:

Fixed assets (net) $960,000

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. Round to one decimal place.

Determine the company's (b) ratio of liabilities to stockholders' equity. Round to one decimal place.

Reference no: EM132758006

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