1. Calculate the Net Working Capital for each of the following scenarios Current Assets Current Liabilities Net Working Capital Risk Rating (1-4, with 1 being the most risky) A. $1,000 2,000 B. $1,000 750 C. $1,000 1,500 D. $1,000 400 2. Calculate the Current Ratios for each of the scenarios. SHOW WORK. Current Ratio = CA/CL Current Ratio Risk Rating (1-4, with 1 being the most risky) 60 3. The higher the NWC, the (lower or higher) the risk of becoming technically insolvent. 4. The higher the Current Ratio, the (lower or higher) the risk of becoming technically insolvent. 5. The lower the NWC, the (lower or higher) the risk of becoming technically insolvent. 6. The lower the Current Ratio, the (lower or higher) the risk of becoming technically insolvent. 7. What is the relationship between the liquidity ratios (NWC and the Current Ratio) and risk? Remember that RISK is the risk of becoming technically insolvent