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11. Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt ratio of 55%. The

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11. Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt ratio of 55%. The size of the firm does not change. How much debt must the company add or subtract to achieve the target debt ratio? Barry Computer Company: Balance Sheet as of Year 0 (In Thousands) Cash $ 77,500 Accounts payable S129,000 Receivables 336,000 Notes 84,000 Inventories 241,500 Accruals 117,000 Total current assets $655,000 Total current liabilities $330,000 Net fixed assets 292,500 Long-term debt 256,500 Common equity 361,000 Total assets $947,500 Total liabilities & equity $947,500 Barry Computer Company: Income Statement for Year Ended Year 0 (In Thousands) Sales Cost of goods sold Depreciation Selling Expenses EBIT Interest EBT Taxes Net Income $1,607,500 1,566,000 41,500 145,000 70,000 24,500 45,500 11.375 34,125

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