Sixty (60) percent of Extreme Well Drillings assets are financed with common equity, which is the only

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Sixty (60) percent of Extreme Well Drilling’s assets are financed with common equity, which is the only type of equity financing the company has. Extreme’s current ratio is 5.0, its total assets turnover is 4.0, current assets equal $150,000, and its sales equal $1,800,000. What amount of Extreme’s total liabilities is long term, and what amount is short term (current liabilities)?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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