The Following Information Has Been Condensed from the December 31

question 208

Essay

The following information has been condensed from the December 31 balance sheets of Gabriel Co.: $\begin{array}{l}&\text { Year } 2&\text { Year } 1\\\text { Assets: }\\\text { Current assets } & \$ 825,500 & \$ 674,300 \\\text { Fixed assets (net) } & 1,473,600 & 1,275,300\\\text { Total assets } & \$ 2,299,100 &\$ 1,949,600\\\\\text { Liabilities: }\\\text { Current liabilities } & \$ 313,500 & \$ 309,600 \\\text { Long-term liabilities } & 703,000 & 545,000 \\\text { Total liabilities } & \$ 1,016,500 & \$ 854,600 \\\text { Stockhol ders' equity } & \$ 1,282,600 & \$ 1,095 ,000\\\text { Total liabilities and }\\\text { stockholders' equity }&\$2,299,100&\$1,949,600\end{array}$ ​ (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:

Benefits

Forms of compensation provided to employees or members of a community, which may include health insurance, pensions, grants, or access to services and facilities.

International Monetary Fund

An international financial institution created in 1945 to promote global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty worldwide.

World Bank

A worldwide finance institution that provides funding and grants to underprivileged countries' governments to help finance capital projects.

World Trade Organization

An international organization that regulates international trade with the aim of ensuring that trade flows as smoothly, predictably, and freely as possible between nations.