• STU Inc. wants to assess its solvency using solvency ratios. The financial data for the year is as follows:

  • Total Liabilities: $600,000
  • Total Assets: $1,200,000
  • Equity: $400,000
  • Long-term Debt: $300,000

• Calculate the following solvency ratios:

  • Debt-to-Assets Ratio
  • Equity Ratio
  • Debt-to-Equity Ratio