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Capital structure analysis)The liabilities and owners' equity for Campbell Industries is found here Accounts payable $ 506,000 Notes payable $249,000 Current liabilities $755,000 Long-term debt
Capital structure analysis)The liabilities and owners' equity for Campbell Industries is found here
Accounts payable | $ 506,000 |
|
Notes payable | $249,000 | |
Current liabilities | $755,000 | |
Long-term debt | $1,105,000 | |
Common equity | $4,505,000 | |
Total liabilities and equity | $6,365,000 |
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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