Use this data table of Campbell Industries liabilities and owners' equity to complete parts a and b.
Accounts payable 530,000
Notes Payable 252,000
Current Liabilities 782,000
Long-term Debt 1,127,000
Common Equity 4,939,000
Total Liabilities and Equity 6,848,000
a. What percentage of the firm's assets does the firm finance using debt (liabilities)? (Round to one decimal place.)
b. If Campbell were to purchase a new warehouse for $1.3 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? (Round to one decimal place.)