Answer:
Net working capital to fixed assets = 0.50678 rounded off to 0.51
Explanation:
The value of total assets can be calculated by adding the value of current assets and the value of fixed assets.
Total assets = Current Assets + Fixed assets
Total assets = (7950 + 1263 + 3907) + 8400
Total Assets = $21520
The working capital is the difference between the value of current assets and the value of current liabilities.
Net Working capital = Current assets - Current Liabilities
Net working capital = (7950 + 1263 + 3907) - 2214
Net Working capital = $10906
The ratio of net working capital to fixed assets can be calculated by dividing the value of net working capital by the value of the fixed assets.
Net working capital to fixed assets = 10906 / 21520
Net working capital to fixed assets = 0.50678 rounded off to 0.51
