Hello - I am in need of some assistance with the following assignment:

Bob needs help making a decision on the company's working capital policy. He has sent you a memo.

Deliverables

1. 1. Please complete the calculations.
2. 2. Characterize the working capital policies as conservative, moderate, or aggressive.
3. 3. Summarize the main risks and rewards of each approach in a report me.

Memo from Bob Here is an example for the Working Capital Policy Project Assumptions: Debt Equity Ratio: 1.00 Interest: Short-Term Debt 6%, Long-Term Debt 8% Tax Rate: 50% Conservative Current Assets Fixed Assets Total Assets Current Assets Fixed Assets Total Assets Current Liabilities (6% Interest) Long-Term Debt (8% Interest) Equity (Debt Equity Ratio = 1.00) Total Liabilities and Equity Sales EBIT Interest Taxable Income Income Tax at 50% Tax Rate Earnings to Common Stockholders Return on Assets (EBIT/Assets) Return on Equity (Earnings to Common/Commo n Equity) Perceived Risk Moderate Aggressive $61,000 $50,000 $111,000 $61,000 $50,000 $111,000 $50,000 $50,000 $100,000 $50,000 $50,000 $100,000 $38,000 $50,000 $88,000 $38,000 $50,000 $88,000 $0 $25,000 $44,000 $55,500 $25,000 $0 $55,500 $50,000 $44,000 $111,000 $100,000 $88,000 $100,000 $15,000 $4,440 $10,600 $100,000 $15,000 $3,500 $11,500 $100,000 $15,000 $2,640 $12,360 To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated To be calculated Discuss Discuss Discuss