Refer to Allieds balance sheets shown in Table 3.1 to answer the following questions: a. What was
Question:
Refer to Allied’s balance sheets shown in Table 3.1 to answer the following questions:
a. What was Allied’s net working capital on December 31, 2020?
b. What was Allied’s net operating working capital on December 31, 2020? Once again, assume Allied has no excess cash in 2020.
Table 3.1
Transcribed Image Text:
Allied Food Products: December 31 Balance Sheets (millions of dollars) Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment (cost minus depreciation) Other assets expected to last more than a year Total assets Liabilities and Equity Current liabilities: Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common equity: Common stock (75,000,000 shares) Retained earnings Total common equity Total liabilities and equity 2021 $ 10 375 615 $1,000 1,000 0 $2,000 $ 60 140 110 $ 310 750 $1,060 $ 130 810 $940 $2,000 2020 $ 80 315 415 $ 810 870 0 $1,680 $ 30 130 60 $ 220 580 $ 800 $ 130 750 $ 880 $1,680
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Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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