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