Long-term solvency analysis

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Long-Term Solvency Analysis

The following information was taken from Charu Company's balance sheet:

Fixed assets (net)$860,000

Long-term liabilities 200,000

Total liabilities 600,000

Total stockholders' equity 250,000

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

b. Ratio of liabilities to stockholders' equity

Reference no: EM132420907

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Long-term solvency analysis : The following information was taken from Charu Company's balance sheet:
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