Determine the company ratio of fixed assets

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

Fixed assets (net) $1,400,000

Long-term liabilities 400,000

Total liabilities 560,000

Total stockholders' equity 1,400,000

Required -

(a) Determine the company's ratio of fixed assets to long-term liabilities and Round to one decimal place.

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

Reference no: EM132691598

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