The following information has been condensed from the December 31 balance sheets

Question

The following information has been condensed from the December 31 balance sheets of Gobniks Co. Year 2 Year 1 Aeeets Current assets Fixed assets (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' equity Total liabilities and stockholders' equity 825,500 674,300 1,275,300 $2,299,100 1,949,600 1,473,600 309,600 545,000 $1,016,500 $ 854,600 1,282,600 1,095,000 $2,299,100 1,949,600 313,500 703,000 Round your answers to two decimal places a. Determine the ratio of fixed assets to long-term liabilities for each year Year 2: Year 1

Explanation / Answer

1 Year 2 Year 1 Fixed asset to long term liabilities = Fixed assets / Long term liabilities Fixed assets 1473600 1275300 Long term liabilities 703000 545000 Fixed assets to long term liabilities 2.10 2.34 2 Liabilities to stockholders equity = total liabilities / stockholders equity    Total liabilities 1016500 854600 Stockholders equity 1282600 1095000 Liabilities to stockholders equity 0.79 0.78

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