Question: The financial information for Laurel Electronics referred to in Problem 3.5 is all at book value. Suppose marking to market reveals that the market value

The financial information for Laurel Electronics referred to in Problem 3.5 is all at book value. Suppose marking to market reveals that the market value of the firm’s inventory is 20 percent below its book value, its receivables are 25 percent below its book value, and the market value of its current liabilities is identical to the book value. What is the firm’s net working capital using market values? What is the percentage change in net working capital?

Step by Step Solution

★★★★★

3.48 Rating (181 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Market value of inventory 7121599 080 5697279 Market value of receivabl... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

141-B-C-F-I-R-C-F (230).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

The project referred to in Problem 28 has been partially completed. Task a required four weeks, task b nine weeks, task c four weeks, and task d five weeks. Update the simulation model you developed...

What does an increase in net working capital mean with regard to cash flow?

The following represents the financial information for Trovatore Corporation, a manufacturer of electronic components, for two months: Required a. Classify these items into prevention (P), appraisal...

The financial information for Laurel Electronics referred to in Problem 3.5 is all at book value. Suppose marking to market reveals that the market value of the firms inventory is 20 percent below...

answer the following excel problems using the provided example. use formulas to show work please these are the tabs missing thats all the problems Stay in protected View. Enable Edit F H B D E G 3.6....

Hi can somebody check my work if it is correct first attached file is the question and the second one is the answer and here the original question; Complete tabs 3.5, 3.9, 3.14, 3.17, 3.25, and STP...

follow the example to answer these excel problems. please show the formulas to show work. Stay in protected View. Enable Edit F H B D E G 3.6. Working capital: The financial information for Laurel...

Complete tabs 3.1, 3.13, 3.24, 3.26, and 3.30 in the attached chapter 3 excel spreadsheet.An example tab is provide in the spreadsheet for your guidance.You must use formulas in the spreadsheet to...

Complete tabs 3.5, 3.9, 3.14, 3.17, 3.25, and STP 3.4 in the attached Chapter 3 Excel spreadsheet. An EXAMPLE tab is provided in the spreadsheet for your guidance. You must use formulas in the...

Data for Ortiz Company are given in BE10-4. In March 2011, the company incurs the following costs in producing 100,000 units: direct materials $425,000, direct labor $590,000, and variable overhead...

In a certain village, it is traditional for the eldest son (or the older son in a two-son family) and his wife to be responsible for taking care of his parents as they age. In recent years, however,...

16.49 CHALLENGE Predicting stock returns. Continue your study of historical returns on Treasury bills and common stocks, begun in Exercise 16.45, by regressing stock returns on T-bill returns. (a)...

15.7 Analyze as a two-way table. Analyze the exergaming data in Example 15.6 as a two-way table. (a) Compute the percents in the three categories of TV watching for the exergamers. Do the same for...

Internal growth rate: Given the information in Problem 19.26, what is the internal growth rate of Ellicott Textile Mills?

Internal growth rate: Fantasy Travel Company has a return on equity of

percent, a total equity/total assets ratio of 65 percent, and a dividend payout ratio of 75 percent. What is the companys internal growth rate?

Based on the increasing theft rate in Sunset Harbor, the Harbor is planning to upgrade its security system. It is a 4 year-period project and will significantly increase Sunset Harbors security...

python can add two strings together with ' + ' operator

QUESTION 7 Shares of a closed-end fund are trading at a 6% premium to its $10 net asset value. The current market price of the fund's shares are closest to: a. $9.40. b. $10.06. c. $10.60. d. $16.00....