10. Consider this simplified balance sheet for Geomorph Trading:
Current assets $ 100 $ 60 Current liabilities
Long- term assets 500 280 Long- term debt
70 Other liabilities
$ 600 $ 600
a. Calculate the ratio of debt to equity.
b. What are Geomorph's net working capital and total long- term capital? Calculate the ratio of debt to total long- term capital.
This solution provides a detailed, step-by-step explanation of the given accounting problem.