Chapter 16 Homework Question 5

Long-Term Solvency Analysis The following information was taken from Station Company's balance sheet: Fixed assets (net) $842,400 Long-term liabilities 351,000 Total liabilities 1,965,600 Total stockholders' equity 1,228,500 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity