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 $1.4 million and finance it entirely with long-term debt, what would be the firm's new debt ratio?

Accounts payable $492,000

Notes payable $254,000

Current liabilities $746,000

Long-term debt $1,161,000

Common equity $4,928,000

Total liabilities and equity $6,835,000