Current Asset	20,000.00	Current Liabilities	12,000.00
Non Current Assets	10,000.00	Long Term Debt	5,000.00
		Equity	13,000.00

Situation A: If 2,000 of NCA is shifted to CA thereby increasing it to 22,000 and assuming further that CA generate 15% profit while NCA generate 25% profit, the effect of this is:

Situation B: If 1,000 LTD is transferred to CL thereby increasing it to 13,000 and assuming further that the firm pays 20% interest for short-term debts and 30% interest for LTD, the effect of this is;

Answer rating: 100% (QA)

Solution a In energy units 1 rydberg energy needed ... View the full answer