Assets

Cash 25

Receivables (net) 56

Inventory 51

PP & E (net) 201

Goodwill 25

Total assets 358

Liabilities & Equity

Accounts payable 59

Short term debt 12

Long term debt 130

Preferred stock 17

Common Equity 140

Total Liabilities + Equity 358

Questions: Show your work and calculations (Answers that are Multiples (X) or Percents (%) should be carried to 1 decimal place)

1. What is Newcos net working capital? ($)

2. Calculate its balance sheet financial leverage using LTD/Capitalization. (%)