Question

Accounts payable	$ 519 comma 000$519,000
Notes payable	$ 255 comma 000$255,000
Current liabilities	$ 774 comma 000$774,000
​Long-term debt	$ 1 comma 291 comma 000$1,291,000
Common equity	$ 5 comma 324 comma 000$5,324,000
Total liabilities and equity .  What percentage of the​ firm's assets does the firm finance using debt​ (liabilities)? b.  If Campbell were to purchase a new warehouse for $ 1.2$1.2 million and finance it entirely with​ long-term debt, what would be the​ firm's new debt​ ratio? a.  What percentage of the​ firm's assets does the firm finance using debt​ (liabilities)? The fraction of the​ firm's assets that the firm finances using debt is nothing​%. ​(Round to one decimal​ place.)	$ 7 comma 389 comma 000$7,389,000

Answer 1

Total assets = Current liabilities+ ​Long-term debt+ Common equity

= 774,000+ 1,291,000 + 5,324,000

=7,389,000

Total liabilities = Current liabilities+ ​Long-term debt

= 774,000+ 1,291,000

= 2065000

Percentage of the​ firm's assets financed using debt​ (liabilities)= Total liabilities / Assets

=2065000/ 7,389,000

= 27.95%

rounded to 28%

B: Total assets = Earlier assets + new warehouse

= 7,389,000+ 1,200,000

=8589000

Total debt = Earlier debt+ New debt

= 2065000+ 1,200,000

= 3265000

New debt​ ratio= Total liabilities / Assets

=3265000 /8589000

=38.01%