Question
2Year 2 1Year 1 Assets: Current assets $ 825,500 $ 674,300 Fixed assets (net) 1,473,600 1,275,300 Total assets $2,299,100 $1,949,600 Liabilities: Current liabilities $ 313,500
2Year 2 1Year 1 Assets: Current assets $ 825,500 $ 674,300 Fixed assets (net) 1,473,600 1,275,300 Total assets $2,299,100 $1,949,600 Liabilities: Current liabilities $ 313,500 $ 309,600 Long-term liabilities 703,000 545,000 Total liabilities $1,016,500 $ 854,600 Stockholders' equity $1,282,600 $1,095,000 Total liabilities and stockholders' equity $2,299,100 $1,949,600 (a) Determine the ratio of fixed assets to long-term liabilities for each year. (b) Determine the ratio of liabilities to stockholders' equity for each year. (c) Comment on the year-to-year changes for both ratios.
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