Question: will rate Solve for the net operating working capital below by following three steps 1. Consider a firm with $572 in Cash, $2,825 in Accounts
Solve for the net operating working capital below by following three steps 1. Consider a firm with $572 in Cash, $2,825 in Accounts Receivable, $5,992 in Inventory, $8,977 in Property, plant and Equipment. Calculate the Current Assets of the firm (be careful about what is included in Current Assets) 2. The same firm has $465 in Accurals, $799 in Accounts Payable, $8,914 in Long term Debt and $3,464 in Retained Earnings. Calculate the Current Liabilities of the firm excluding notes payable . (be careful about what is included in Current Liabilities) . What if you were given that current liabilities were $2,165 and notes payable were $765, can you find current liabilities excluding notes payable in this case? 3. Now that you have Current Assets and Current Liabilites without notes payable, use the formula from Section 3-2A to find Net Operating Working Capital Net Working Capital = Current Assets - (Current Liabilities - Notes) Net Working Capital = Current Assets - (Accruals + Accounts Payable) . Include your asnwer in dollars with no decimal example ($5040 or 5040 are both acceptable notation)
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