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anzhelika [568]
3 years ago
5

Duke Company has net fixed assets of $400,000, short-term liabilities of $30,000, long-term liabilities of $20,000, common stock

holders' equity of $90,000, and total stockholders' equity of $100,000 (including the common). Duke's ratio of fixed assets to long-term liabilities is a.8%. b.20. c.8. d.20%.
Business
1 answer:
ycow [4]3 years ago
3 0

Answer:

option (b) 20

Explanation:

Data provided in the question:

Net fixed assets = $400,000

Short-term liabilities = $30,000

Long-term liabilities = $20,000

Common stockholders' equity = $90,000

Total stockholders' equity = $100,000

Now,

Ratio of fixed assets to long term liabilities

= Net Fixed assets ÷ Long term liabilities

or

= $400,000 ÷ $20,000

= 20

Hence,

The correct answer is option (b) 20

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