A firm has: Amount ($ millions) Cash 50 Other Current Assets 96 Current Liabilities 62 What...

A firm has: Amount ($ millions) Cash 50 Other Current Assets 96 Current Liabilities 62 What is its Net Working Capital?

Expert Solution

The Net working Capital of firm is derived by deducting the Current liabilities from the Current assets.

Thus Net working Capital = Current Assets - Current Liabilities.

In the given case the Current Assets = Cash + Other Current Assets

= ( 50 + 96 ) Million Dollars

= 146 Million Dollars

Current Liabilities = 62 Million Dollars

Thus Net Working Capital = ( 146 - 62 ) Million Dollars= 84 Million Dollars

jeff jeffy answered 2 years ago

($ in millions) Current assets 115 Fixed and other assets 165 Total assets 280 Current liabilities...

($ in millions) Current assets 115 Fixed and other assets 165 Total assets 280 Current liabilities 81 Long-term debt 48 Stockholders' equity 151 Total liabilities and equity 280 Common shares outstanding (millions) 14 Total revenues 436 Total operating costs and expenses 350 Interest expense 15 Income taxes 23 Net profits 48 Dividends paid to common stockholders 13 On the basis of this information, calculate as many liquidity, activity, leverage, profitability, and common stock measures as you can. (Note: Assume the...

At the beginning of the year, a firm has current assets of $332 and current liabilities...

At the beginning of the year, a firm has current assets of $332 and current liabilities of $236. At the end of the year, the current assets are $501 and the current liabilities are $276. What is the change in net working capital? Multiple Choice $129 $0 $169 –$129 $209

A partnership has the following account balances: Cash, $95,000; Other Assets, $665,000; Liabilities, $305,000; Nixon (50...

A partnership has the following account balances: Cash, $95,000; Other Assets, $665,000; Liabilities, $305,000; Nixon (50 percent of profits and losses), $215,000; Cleveland (30 percent), $150,000; Pierce (20 percent), $90,000. The company liquidates, and $20,500 becomes available to the partners. Who gets the $20,500? Determine how much of this amount should be distributed to each partner.(Do not round intermediate calculations.)

A partnership has the following account balances: Cash, $76,000; Other Assets, $570,000; Liabilities, $258,000; Nixon (50...

A partnership has the following account balances: Cash, $76,000; Other Assets, $570,000; Liabilities, $258,000; Nixon (50 percent of profits and losses), $180,000; Cleveland (30 percent), $130,000; Pierce (20 percent), $78,000. The company liquidates, and $16,500 becomes available to the partners. Who gets the $16,500? Determine how much of this amount should be distributed to each partner. (Do not round intermediate calculations.) Nixon Cleveland Pierce Safe payments:

A partnership has the following account balances: Cash, $70,000; Other Assets, $540,000; Liabilities, $260,000; Nixon (50...

A partnership has the following account balances: Cash, $70,000; Other Assets, $540,000; Liabilities, $260,000; Nixon (50 percent of profits and losses), $170,000; Cleveland (30 percent), $110,000; Pierce (20 percent), $70,000. The company liquidates, and $8,000 becomes available to the partners. Who gets the $8,000? Determine how much of this amount should be distributed to each partner.(Do not round intermediate calculations.) Nixon Cleveland Pierce Safe payments

A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets...

A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets of $3,000,000 and Total Liabilities of $3,500,000. Which of the following statements is correct: a. this firm is bankrupt b. this firm has a Quick Ratio that is greater than one c. this firm has positive equity d. this firm is technically insolvent

On December 31, Nate Inc. reported the following (in millions): Current Assets Current Liabilities Long-term Liabilities...

On December 31, Nate Inc. reported the following (in millions): Current Assets Current Liabilities Long-term Liabilities Equity $4,863 $4,544 $5,939 $1,305 What amount did the company report as total assets? Select one: a. $6,925 million b. None of the these are correct. c. $16,651 million d. $10,483 million e. $14,041 million

Changing Levels of Current Liabilities Firm B has the following levels of assets, liabilities, and equity:...

Changing Levels of Current Liabilities Firm B has the following levels of assets, liabilities, and equity: Assets Liabilities and Equity Current Assets $20,000 Current Liabilities $10,000 Fixed Assets 42,000 Long-term Debt 37,000 Total 62,000 Equity 15,000 Total 62,000 The firm’s current liabilities cost approximately 4% annually to maintain, and the average annual cost of its long-term funds is 15%. Calculate the firm’s initial values of 1) the ratio of current liabilities to total assets, 2) the annual cost of financing,...

Assume you are given the following abbreviated financial statements: ($ in millions) Current assets $96 Fixed...

Assume you are given the following abbreviated financial statements: ($ in millions) Current assets $96 Fixed and other assets $163 Total assets $259 Current liabilities $76 Long-term debt $37 Stockholders' equity $146 Total liabilities and equity $259 Common shares outstanding 7 million shares Total revenues $374 Total operating costs and expenses $319 Interest expense $10 Income taxes $17 Net profits $28 Dividends paid to common stockholders $7 On the basis of this information, calculate as many liquify, activity, leverage, profitability,...

State Bank has the following year-end balance sheet (in millions): Assets Liabilities and equity Cash $ ...

State Bank has the following year-end balance sheet (in millions): Assets Liabilities and equity Cash $ 10 Deposits $ 90 Loans $ 90 Equity $ 10 Total assets $ 100 Total liabilities and equity $ 100 The loans primarily are fixed-rate, medium-term loans, while the deposits are either short-term or variable-rate deposits. Rising interest rates have caused the failure of a key industrial company, and as a result, 3 percent of the loans are considered uncollectable and thus have no...

Question