Suppose Ferris Industries shows the following assets on their balance sheet:
Accounts Receivable = $5 million
Inventory = $5 million
Plant & Equipment = $140 million
Which of following capital structures is MOST likely to lead to funding and liquidity difficulties for Ferris Industries?
Payables = $3 million Current Debt = $7 million Long Term Debt = $60 million Common Equity = $80 million
Payables = $5 million Current Debt = $5 million Long Term Debt = $100 million Common Equity = $40 million
Payables = $13 million Current Debt = $27 million Long Term Debt = $20 million Common Equity = $90 million
Long Term Debt = $80 million Common Equity = $70 million