Cash Inventory Equipment Total Assets $12 25 128 $165 Accounts Payable Total Current Liabilities Long term debt Total Non Current Liabilities Total Liabilities $10 $10 $50 $50 $60 Common Stock Retained Earnings Total Shareholders Equity $50 55 $105 

Required: 

1. What is the working capital as the financial statements are described? 

2. What would the working capital be if the Accounts Payable were paid off? 

3. Is the balance sheet in compliance with the covenant either before are after the accounts payable are paid off? 

4. What is the value to the lender of a working capital covenant? 

5. Why would the lender agree to waiving the working capital covenant?

Answer rating: 100% (QA)

Sure here are the answers to the questions 1 The working capital as the financial statements are des... View the full answer