On December 31, 2011, Roberts Corporation's current liabilities total $60,000 and long-term liabilities total $160,000. Working capital at December 31, 2011, is equal to $90,000. If Roberts Corporation's debt-to-equity ratio is .40 to 1, total long-term assets must equal

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The debt-to-equity ratio is 0.40, meaning total liabilities are 40% of equity. Total liabilities are $220,000 ($60,000 + $160,000). Therefore, equity is $550,000 ($220,000 / 0.40). Total assets equal liabilities plus equity, which is $770,000. Subtracting current assets ($150,000, derived from working capital $90,000 + current liabilities $60,000) from total assets gives long-term assets of $620,000.

On December 31, 2011, Roberts Corporation's Current Liabilities Total $60,000