1. (Related to Checkpoint 4.2 on page 86) (Capital structure analysis) The liabilities and ownersAc?

1. (Related to Checkpoint 4.2 on page 86) (Capital structure analysis) The liabilities and ownersAc€?c equity for Campbell Industries is found below:

Accounts payable $ 453,000

Notes payable 248,000

Current liabilities $ 701,000

Long-term debt $1,213,000

Common equity $5,477,000

Total liabilities and equity $7,391,000

What percentage of the firmAc€?cs assets does the firm finance using debt (liabilities)? (round to one decimal place)

If Campbell was to purchase a new warehouse for $1.5 million and finance it entirely with long term debt, what would be the firmAc€?cs new debt ratio?

The fraction of the firmAc€?cs assets that the firm finances using debt is ___% (Round to one decimal place).