Question: PLEASE SHOW HOW TO WORK THE PROBLEM OUT. Assets: Cash $10,000 Accounts Receivable: $25,000 Inventory; $40,000 Fixed Assets; $200,000 Total $275,000 Liabilities & Equity Accounts

PLEASE SHOW HOW TO WORK THE PROBLEM OUT.

Assets:

Cash $10,000

Accounts Receivable: $25,000

Inventory; $40,000

Fixed Assets; $200,000

Total $275,000

Liabilities & Equity

Accounts Payable $ 4,000

Notes Payable: $ 6,000

Long-term debt $100,000

Equity $165,000

Total $275,000

a. How much working capital does the firm have?

b. How much net working capital; does the firm have?

c. What are the current ratio and the total debt to total asset ratio?

d. What working capital financial approach is being followed?

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