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At year end 2020 Whole Foods balance sheet has total outstanding debt of $150,000 and net fixed assets of $700,000. The company is liquid with
At year end 2020 Whole Foods balance sheet has total outstanding debt of $150,000 and net fixed assets of $700,000. The company is liquid with a current ratio of 2.75x and has decided to establish a total debt to total capital ratio of 55%. Assuming the size of the firm will not change and total invested capital is $950,000, how much debt must the company add or subtract to achieve the target debt to capital ratio?
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