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Long-term solvency analysis
The following information was taken from Celebrate Company's balance sheet:
Fixed assets (net) $628,800
Long-term liabilities 262,000
Total liabilities 641,900
Total stockholders' equity 917,000
Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one
decimal place.
a. Ratio of fixed assets to long-term liabilities
b. Ratio of liabilities to stockholders' equity