Financial Managment


The liability and owners’ equity for Campbell Industries is found here:


Account Receivable -$523,000


Notes payable- $247,000


Current Liabilities- $770,000


Long term debt- $1,276,000


Common Equity – $5,041,000


Total Liabilities & Equity – $7,087,000




  1. What percentage of the firm’s assets does the firm finance using debt (liability)?

  2. If Campbell were to purchase a nw warehouse for $1.2 million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?


    The fraction of the firm’s assets that the firm fiancé using debt is _____ %