What do the following data taken from a comparative balance sheet indicate about the company's ability to

Question:

What do the following data taken from a comparative indicate about the company's ability to borrow additional funds on a long-term basis in the current year as compared to the preceding year?
_____________________________Current Year _____Preceding Year
Fixed assets (net) ....................... $1,800,000 ........... $1,260,000
Total long-term liabilities ............... 450,000 ................ 350,000
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...