Long-term solvency analysis OBJ. 2 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.