Study the following balance sheet to help you prepare for your upcoming interview for an entry-level analyst position at Tun Fuels Corporation. Tun Fuels Corporation Balance Sheet           Cash $1,293,750   Accounts payable $3,105,000 Accounts receivable $4,528,125   Accruals $1,940,625 Inventory $7,115,625   Notes payable $2,716,875 Total current assets $12,937,500   Total current liabilities $7,762,500       Long-term debt $5,737,500         Total debt $13,500,000       Common equity $2,700,000 Net plant and equipment $9,562,500   Retained earnings $6,300,000         Total equity $9,000,000 Total assets $22,500,000   Total liabilities and equity $22,500,000   During your interview for an introductory-level analyst position at Tun Fuels Corporation, the interviewer asks you to complete the following table using the information provided in the preceding balance sheet. Net Working Capital  $___________________     Current Ratio  _________.__________      Assume that TFC decides to purchase additional warehouse space costing $286,875 using long-term debt capital. Given the condition of the company noted in the balance sheet, this activity should be expected to cause TFC’s current ratio to   ___________(pick either increase decrease or stay the same)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 Net working capital, working capital balances, and the current ratio

Study the following balance sheet to help you prepare for your upcoming interview for an entry-level analyst position at Tun Fuels Corporation.
Tun Fuels Corporation Balance Sheet
 
 
 
 
 
Cash $1,293,750   Accounts payable $3,105,000
Accounts receivable $4,528,125   Accruals $1,940,625
Inventory $7,115,625   Notes payable $2,716,875
Total current assets $12,937,500   Total current liabilities $7,762,500
      Long-term debt $5,737,500
        Total debt $13,500,000
      Common equity $2,700,000
Net plant and equipment $9,562,500   Retained earnings $6,300,000
        Total equity $9,000,000
Total assets $22,500,000   Total liabilities and equity $22,500,000
 
During your interview for an introductory-level analyst position at Tun Fuels Corporation, the interviewer asks you to complete the following table using the information provided in the preceding balance sheet.
Net Working Capital  $___________________    
Current Ratio  _________.__________   
 
Assume that TFC decides to purchase additional warehouse space costing $286,875 using long-term debt capital. Given the condition of the company noted in the balance sheet, this activity should be expected to cause TFC’s current ratio to   ___________(pick either increase decrease or stay the same)
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