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Compute values to arrive at working capital and compare ways to finance working capital

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Please show work so I can understand how you arrived at the conclusions. Thanks

Two companies, A and B, have the following balance sheet accounts:


Current assets $ 150 $ 800

Fixed assets 300 2200

Current liabilities 75 600

Long-term debt 75 1000

Equity 300 1400

a. Compute values for all of the ratios that measure working capital for firms A

and B.

b. Compare Firm A to B with regards to its need for working capital and how it

finances its working capital (short-term vs. long-term financing).

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