Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 22

Long-term solvency analysis
The following information was taken from Kellman Company's balance sheet:

Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity.
The following information was taken from Charu Company's balance sheet:

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