Assets Cash $ 19,927 Receivables 61,469 Inventory 10,128 1. The following is the balance sheet for...

    

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Assets Cash $ 19,927 Receivables 61,469 Inventory 10,128 1. The following is the balance sheet for Ford Motor Company as of December 31, 1994 (in millions): Accounts Payable 1. Liabilities Debt due within 1 year . Other Current Liabilities Current Assets 91,524 Current Liabilities Fixed Assets 45,586 Short-Term Debt Long-Term Debt Equity $ 11,635 36,240 2,721 50,596 36,200 37,490 12,824 $137,110 Total Assets $137,110 The firm had revenues of $154,951 million in 1994 and cost of goods sold of $103,817 million. a. Estimate the net working capital b. Estimate the noncash working capital. c. Why is Ford's working capital so high? If you were told that Ford Capital (the financing arm of Ford) Total Liabilities was consolidated into this balance sheet, would that help you with your explanation? d. Estimate noncash working capital as a percent of revenues. If you were asked to estimate the noncash working capital needs for a new automobile fac- tory that Ford was constructing, would you use this ratio? Why or why not? Assets Cash $ 19,927 Receivables 61,469 Inventory 10,128 1. The following is the balance sheet for Ford Motor Company as of December 31, 1994 (in millions): Accounts Payable 1. Liabilities Debt due within 1 year . Other Current Liabilities Current Assets 91,524 Current Liabilities Fixed Assets 45,586 Short-Term Debt Long-Term Debt Equity $ 11,635 36,240 2,721 50,596 36,200 37,490 12,824 $137,110 Total Assets $137,110 The firm had revenues of $154,951 million in 1994 and cost of goods sold of $103,817 million. a. Estimate the net working capital b. Estimate the noncash working capital. c. Why is Ford's working capital so high? If you were told that Ford Capital (the financing arm of Ford) Total Liabilities was consolidated into this balance sheet, would that help you with your explanation? d. Estimate noncash working capital as a percent of revenues. If you were asked to estimate the noncash working capital needs for a new automobile fac- tory that Ford was constructing, would you use this ratio? Why or why not?