Fred Corporation reports the following numbers:

Operating assets $2,000,000
Financial assets $1,100,000
Total assets $3,100,000
Operating current liabilities $500,000
Financial liabilities $700,000
Stockholder’s equity $1,900,000
Total liabilities and equity $3,100,000

Required

What is the dollar value of Fred’s net operating assets or invested capital?
What is the dollar value of Fred’s net financial holdings? And would this be a net financial asset or a net financial liability?

Answer rating: 100% (QA)

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