How much will working capital increase or decrease

Assignment Help Financial Accounting

Reference no: EM133337163

Case: Excelsior Corporation has the following headings on its December 31, 2019 Balance Sheet:
Total Current Assets $200,000
Total Assets $500,000
Total Current Liabilities $115,000
Total Non Current Liabilities $300,000

On January 2020 Excelsior pays off $51,000 in long term debt by transferring title to one of its idle factories to the creditor

Question:

Required 1: Assume no other transaction in 2020. How much will working capital increase/decrease by when comparing December 2019 with January 2020? $

Required 2: The current ratio of 2019 is:

Required 3: Excelsior's financial leverage in 2019 is (calculate it as a debt to equity ratio):

Required 4: Excelsior's financial leverage in 2019 is (calculate the Equity Ratio and not the Equity Ratio percentage):

Required 5: If sales for 2019 amount to $570,000, the working capital turnover for 2019 is:

Reference no: EM133337163

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