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In: Finance

Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you...

Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $630,000, Accounts receivable = $830,000, Inventory = $530,000, Accrued wages and taxes = $71,000, Accounts payable = $203,000, and Notes payable = $1,030,000. What is Cypress's net working capital?

Solutions

Expert Solution

NET WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES
AMOUNT
CURRENT ASSETS
Cash and marketable securities $              6,30,000
Account Receivable $              8,30,000
Inventory $              5,30,000
TOTAL OF CURRENT ASSETS (A) $            19,90,000
CURRENT LIABILITIES
Accrued Wages and taxes $                  71,000
Account Payable $              2,03,000
Notes Payable $            10,30,000
TOTAL CURRENT LIABILITIES $            13,04,000
NET WORKING CAPITAL (A-B) $              6,86,000
Answer = Cypers's Net Working Capital $ 686,000

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