AP 100,000

Short Term Debt 400,000

Current Liabilities 500,000

Long term debt 2,000,000

Owners Equity 1,500,000

Total 4,000,000

(Adjusting a firm's capital structure) Curley's Fried Chicken Kitchen operates two southern cooking restaurants in St. Louis, Missouri, and has the following financial structure: 3. The firm is considering an expansion that would involve raising an additional $2.0 million. a. What are the firm's debt ratio and interest-bearing debt ratio in its present capital structure? b. If the firm wants to have a debt ratio of 50 percent, how much equity does the firm need to raise in order to finance the expansion