Mr. X has been seen his business growing and increasing. It is a good business because online sales are available to reach all segment customers. The company is categorized as Small Medium Enterprises. Mr. X tried to anticipate these sales increased by buying more inventories. By buying more inventories, the company can fulfill increasing demand and attract new customers. This is data at present time:

Total Assets IDR 100,000,000; Fixed Assets IDR 40,000,000; Total current assets IDR 60,000,000 which including cash and inventory for IDR

32,000,000.

Total current liabilities IDR 10,000,000; Share Paid Capital is IDR 90,000,000. Mr. X plans to expand his business for medium and long planning and it requires long term resources to finance more equipment.

Questions:

a. If the company wants Debt to Asset = 0,50. How much long-term liabilities is needed?

b. What is the changes in Debt to Equity Ratio.?

c. Using the old data (before the DER changes), company want to have current ratio = 2. How much

credit purchase need to be made if the company wants current ratio =2?