Chapter 14 Assignment 3. Net working capital, working capital balances, and the current ratio Extensive Enterprise Inc.'s Chief Financial Officer (CFO) has decided to take a closer look at the firm's short-term assets and liabilities. Extensive's balance sheet follows: Extensive Enterprise Inc. (Extensive) Balance Sheet Cash Accounts receivable $1,543,750 $5,403,125 $8,490,625 Inventory Total current assets $15,437,500 Accounts payable $3,705,000 Accruals $2,315,625 Notes payable $3,241,875 Total current liabilities $9,262,500 Long-term debt $10,237,500 Total debt $19,500,000 Common equity $3,900,000 Retained earnings $9,100,000 Total equity $13,000,000 Total Habilities and equity $32,500,000 Net plant and equipment $17,062,500 Total assets $32,500,000 The value of Extensive's net working capital is And, Extensive's current ratio is Assume that Extensive Enterprise Inc. decides to acquire an additional $1,625,000 in inventories and pay using its accounts payable. Given the condition of the company noted in the balance sheet, this activity should be expected to cause Extensive's current ratio to Grade it Now Save & Continue