Question # 7

Rochelle, Inc. is evaluating their capital structure. They are analyzing the firm's asset structure and wish to determine their net debt so they can determine if they will be able to take on more debt. Currently, they have cash of $41,040, short-term debt of $86,000, long-term debt of $92,400, and $52,000 in cash equivalents. What is Rochelle's total net debt?

a. $85,360

b. $126,400

c. $137,360

d. $178,400

e. $230,400