The liabilities andowners' equity for Campbell Industries is foundbelow:

Accounts payable $509,000

Notes payable $254,000

Current liabilities $763,000

Long-term debt $1,244,000

Common equity $5,015,000

Total liabilities and equity $7,022,000

a.What percentage of thefirm'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 withlong-term debt, what would be thefirm's new debtratio?

Answers A-B: Please Round to One Decimal Place