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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.