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2 October, 02:19

Consider this simplified balance sheet for geomorph trading: current assets $ 180 current liabilities $ 100 long-term assets 580 long-term debt 240 other liabilities 150 equity 270 $ 760 $ 760

a. what is the company's debt-equity ratio? (round your answer to 2 decimal places.) debt-equity ratio

b. what is the ratio of long-term debt to total long-term capital? (round your answer to 2 decimal places.) long-term debt ratio

c. what is its net working capital? net working capital $

d. what is its current ratio? (round your answer to 2 decimal places.) current ratio

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  1. 2 October, 05:22
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    a. Debt to equity ratio = Total debt / total equity

    Total debt (other than current) = 240 + 150 = 390

    Total equity = 270

    Debt to equity = 390/270 = 1.44

    b. Long term debt = 240

    Equity (long term) = 270

    Long term capital = 240 + 270 = 510

    Long term debt to long term capital = 240/510 = 0.4706 = 47.06%

    c. Working capital = current assets - current liabilities = 180-100 = $80

    d. Current ratio = Current assets / current liabilities = 180/100 = 1.8
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