The Following Information Has Been Condensed from the December 31

question 50

Essay

The following information has been condensed from the December 31 balance sheets of Gabriel Co.: a) Determine the ratio of fixed assets to long-term liabilities for each year.
b) Determine the ratio of liabilities to stockholders' equity for each year.
c) Comment on the year-to-year changes for both ratios. Round your answers to two decimal places.

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Definitions:

Assignment

The transfer of rights, duties, or interests from one party to another.

Obligation

A legal or moral duty or responsibility that one party owes to another, enforceable by law.

Discharged

Released from a legal duty or liability, often used in contexts as being discharged from a contractual obligation or from bankruptcy.

Future Wages

Earnings that an individual is expected to receive from their employment in the upcoming period.