Liabilities and Owners’ Equity Assignment
February 18th, 2020
The liabilities and owners’ equity for Campbell Industries is found here:
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a. What percentage of the firm’s assets does the firm finance using debt (liabilities)?
b. If Campbell were to purchase a new warehouse for $ 1.4$1.4
million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?
The fraction of the firm’s assets that the firm finances using debt is ?%.
(Round to one decimal place.)
Accounts payable
$507,000
Notes payable
$ 258,000
Current liabilities
$765,000
Long-term debt
$ 1,112,000
Common equity
$5,487,000
Total liabilities and equity
$ $7,364,000. Get Finance homework help today