Question
Accounts payable $462,000 Notes payable $249,000 Current liabilities $711,000 Long-term debt $1,264,000 Common equity $5,123,000 Total liabilities and equity $7,098,000 a.What percentage of the firm's
| Accounts payable | $462,000 |
|
| Notes payable | $249,000 | |
| Current liabilities | $711,000 | |
| Long-term debt | $1,264,000 | |
| Common equity | $5,123,000 | |
| Total liabilities and equity | $7,098,000 |
a.What percentage of the firm's assets does the firm finance using debt (liabilities)?
b.If Campbell were to purchase a new warehouse for $1.2
million and finance it entirely with long-term debt, what would be the firm's new debt ratio?
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Managerial Finance
Authors: Alan Parkinson
1st Edition
0750618264, 978-0750618267
