(Related to Checkpoint 4.2) (Capital structure analysis)The liabilities and owners' equity for Campbell Industries is found here:

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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

$1.3

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

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Part 1

a.What percentage of the firm's assets does the firm finance using debt (liabilities)?

The fraction of the firm's assets that the firm finances using debt is

enter your response here%.

(Round to one decimal place.)

Accounts payable	$458,000
Notes payable	$260,000
Current liabilities	$718,000
Long-term debt	$1,222,000
Common equity	$4,554,000
Total liabilities and equity	$6,494,000