Question
PLEASE SHOW HOW TO WORK THE PROBLEM OUT. Assets: Cash $10,000 Accounts Receivable: $25,000 Inventory; $40,000 Fixed Assets; $200,000 Total $275,000 Liabilities & Equity Accounts
PLEASE SHOW HOW TO WORK THE PROBLEM OUT.
Assets:
Cash $10,000
Accounts Receivable: $25,000
Inventory; $40,000
Fixed Assets; $200,000
Total $275,000
Liabilities & Equity
Accounts Payable $ 4,000
Notes Payable: $ 6,000
Long-term debt $100,000
Equity $165,000
Total $275,000
a. How much working capital does the firm have?
b. How much net working capital; does the firm have?
c. What are the current ratio and the total debt to total asset ratio?
d. What working capital financial approach is being followed?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti
2nd Edition
0073523097, 9780073523095
