The following information was taken from Shield Companys balance sheet: Fixed assets (net) $1,000,000 Long-term liabilities 500,000

Question:

The following information was taken from Shield Company’s balance sheet:

Fixed assets (net) $1,000,000
Long-term liabilities 500,000
Total liabilities 800,000
Total stockholders’ equity 800,000

Determine the company’s
(a) Ratio of fixed assets to long-term liabilities and
(b) Ratio of liabilities to stockholders’ equity.