What will be the impact on the current and net working


A company has current assets of $600,000, fixed assets of $500,000, current liabilities of $350,000, inventory of $300,000, and long-term debt of $500,000. If inventory decreases by $100,000 and current liabilities remain the same, what will be the impact on the "current" and "net working capital to total assets" ratios? Show before and after calcualations of the ratios.

Solution Preview :

Prepared by a verified Expert
Corporate Finance: What will be the impact on the current and net working
Reference No:- TGS01531889

Now Priced at $35 (50% Discount)

Recommended (97%)

Rated (4.9/5)