Question: Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash. . . . . . . . . . . . . . . . .

Balance Sheet

Assets

Liabilities

Current Assets

Current Liabilities

Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54

Accounts payable. . . . . . . . . . . . . . . . . . . . .

38

Accounts receivable. . . . . . . . . . . . . . . . . .

21

Notes payable/short term debt. . . . . . . . . . .

5

Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

Total current liabilities. . . . . . . . . . . . . . . .

43

Total current assets. . . . . . . . . . . . . . . . . . . . .

91

Long-Term Assets

Long-Term Liabilities

Net property, plant, and equipment. . . . . . . . .

119

Long-term debt. . . . . . . . . . . . . . . . . . . . . . . .

136

Total long-term assets. . . . . . . . . . . . . . . . . . .

119

Total long-term liabilities. . . . . . . . . . . . . . . .

136

Total liabilities. . . . . . . . . . . . . . . . . . . .

179

Stockholders' Equity. . . . . . . . . . . . . . . . . .

31

Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . .

210

Total liabilities and stockholders' Equity

210

The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?

A. $1 million

B. $48 million

C. $6 million

D. $6 million

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!