Determine the bad debt expense for year 2 based on the preceding facts. (hint: use the allowance for doubtful accounts t-account to solve for the missing value.) (enter your answers in thousands not in dollars.)2. working capital is defined as current assets minus current liabilities. would the working capital be affected by the write-off of an uncollectible account? 3. would the net income be affected by the $821,000 write-off during year 2?

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%