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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
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
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
