Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
Pro Forma Income Statement for Ideko,2005-2010
-The amount of net working capital (in 000's) for Ideko in 2007 is closest to:

• A)$30,510.
• B)$26,420.
• C)$22,170.
• D)$35,195.

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Definitions:

Times Interest

A metric that evaluates a firm's capability to handle its debt responsibilities using its present earnings.

Equity Multiplier

A financial ratio that measures a company's use of debt financing by comparing total assets to shareholders' equity.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term assets to cover short-term debts.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.