Question: please answer both questions, they are multiple choice 20.. Prezas Company's balance sheet showed total current assets of $3,250, all of which were required in
20.. Prezas Company's balance sheet showed total current assets of $3,250, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital? a. $1,620 b. $1,701 c. $2,309 d. $1,721 e. $2.025 21. Rao Construction recently reported $20.00 million of sales, $12.60 million of operating costs other than depreciation, and S3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions? a. $4.27 b. $3.83 c. $3.56 d. $4.40 e. $3.87
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