Question

Asked Jan 29, 2020

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- Liabilities for your project are $120,000, and assets are only $100,000.

- What is the Working Capital Ratio for your project? (2 points)

- Is this considered a good or bad figure and why? (2 points)

Step 1

Working capital ratio is the ratio of assets and liabilities.

Step 2

A) Calculate working capital ratio.

Step 3

Working capital assets is 0.833

B) As the value of ratio i...

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