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Finance: Net working capital and Debt-equity ratio.

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18 -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
190 Equity
$600 $600

a. Calculate the ratio of debt to equity

b. What are Geomorphy's net working capital and total long-term capital? Calculate the ratio of debt to total long-term capital.

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Solution Summary

The problem deals with estimating the net working capital and debt-equity ratio from provided information.

Solution provided by:
Chidi Ngene, M. Sc.
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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