Long-Term Solvency AnalysisThe following information was taken from Combine Company's balance sheet:Fixed assets (net)$1,037,300Long-term liabilities253,000Total liabilities1,239,700Total stockholders' equity885,500Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio ofliabilities to stockholders' equity. If required, round your answers to one decimal place.a. Ratio of fixed assets to long-term liabilitiesb. Ratio of liabilities to stockholders' equity

Formulas: Ratio of fixed assets to long term liabilities = Fixed assets / Long term liabilities…

Answered: The following information was taken…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 6BE

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The following information was taken from Slater Company's balance sheet: Fixed assets (net) $1,741,392 Long-term liabilities 417,600 Total liabilities 591,040 Total stockholders' equity 1,847,000 Determine the company's (a) ratio of fixed assets to long-term liabilities, and (b) ratio of liabilities to stockholders' equity. Round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity

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