On December 31,2014,Omar Corporation's current liabilities total $60,000 and long-term liabilities total $160,000.Working capital at December 31,2014,is equal to $90,000.If Omar 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 calculated as total liabilities divided by total equity. Given the ratio is 0.40, total liabilities ($60,000 + $160,000 = $220,000) divided by total equity equals 0.40. Solving for total equity gives $550,000. Working capital is current assets minus current liabilities, so current assets are $150,000 ($90,000 + $60,000). Total assets equal current assets plus long-term assets, which must equal total liabilities plus equity. Solving for long-term assets gives $620,000.

On December 31,2014,Omar Corporation's Current Liabilities Total $60,000 and Long-Term