Working with financial statements Given the balance sheet a

Working with financial statements) Given the balance sheet, , and income statement, ?\' for Pamplin Inc a. How much is the firm\'s net working capital and what is the debt ratio? b. Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2015. a. How much is the firm\'s net working capital and what is the debt ratio? The net working capital is $ . Round to the nearest dollar.)

Solution

Net Working Capital=Current Assets-Current liabilities

Standard Debt Ratio is 0.5 and the calculated one is lower showing longetivity of the given enterprise.

Particulars	2014	2015
Total Current Assets(a)	1200	1189
Total of Current Liabilities(b)	200	290
Net Working Capital(a-b)	1000	899
Calculation for Debt Ratio:
Total Liabilities/Total Assets
Total Liabilities(Current liabilities+Bonds)	800	890
Total Assets	2400	2608
Debt Ratio	0.33	0.34