(Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here: 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 $1.2 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 27.21 %. (Round to one decimal place.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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2:01
mylab.pearson.com/S
Data table
(Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is
found here:
Accounts payable
Notes payable
Current liabilities
Long-term debt
Common equity
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 $1.2 million and finance it entirely with long-term debt, what
would be the firm's new debt ratio?
$514,000
$255,000
$769,000
$1,294,000
$5,326,000
Total liabilities and equity
$7,389,000
Click on the icon in order to copy its contents into a spreadsheet.)
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 27.21 %. (Round to one decimal place.)
Print
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LTE2.II 4G
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Transcribed Image Text:2:01 mylab.pearson.com/S Data table (Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here: Accounts payable Notes payable Current liabilities Long-term debt Common equity 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 $1.2 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? $514,000 $255,000 $769,000 $1,294,000 $5,326,000 Total liabilities and equity $7,389,000 Click on the icon in order to copy its contents into a spreadsheet.) 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 27.21 %. (Round to one decimal place.) Print ||| = 1 LTE2.II 4G Done + @ O I 72% 2 : X
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