chapter 16

Long-term solvency analysis

The following information was taken from Combine Company's balance sheet:

Line Item Description	Amount
Fixed assets (net)	$2,134,400
Long-term liabilities	464,000
Total liabilities	324,800
Total stockholders' equity	1,624,000

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.

Line Item Description	Ratio
a. Ratio of fixed assets to long-term liabilities	fill in the blank 1
b. Ratio of liabilities to stockholders' equity	fill in the blank 2