Question

In: Finance

Balance sheet 2010 2011 2010 2011 Cash 4,600 3,800 Accounts payable 16,200 17,100 Accounts receivable 10,200...

Balance sheet
2010 2011 2010 2011
Cash 4,600 3,800 Accounts payable 16,200 17,100
Accounts receivable 10,200 9,700 Long-term debt 36,000 33,400
Inventory 18,900 20,300 Common stock 14,000 20,000
Net fixed asset 41,400 42,100 Retained earning 8,900 5,400
Total asset 75,100 75,900 Total claim 75,100 75,900
Income statement 2011
Net sales 61,600
Cost 48,900
Depreciation 7,800
EBIT 4,900
Interest 2,500
EBT 2,400
Taxes 800
Net income 1,600

What is the amount of the change in net working capital using the above financial statements ?

Solutions

Expert Solution

Answer:

Net Working capital = Current Assets - Current Liabilities

Calculation of Current Assets

Current Assets for 2010 = Cash + Inventory +Accounts Receivable = 4,600 + 18,900 + 10,200

Current Assets for 2010 = 33,700

Current Assets for 2011 = Cash + Inventory +Accounts Receivable = 3,800 + 20,300 + 9,700

Current Assets for 2011 = 33,800

Calculation of Current Liabilities

Current Liabilities for 2010 = Accounts Payable = 16,200

Current Liabilities for 2011 = Accounts Payable = 17,100

Calculation of Net Working Capital

Net Working Capital for 2010 = Current Assets for 2010 - Current Liabilities for 2010 = 33,700 - 16,200 = 17,500

Net Working Capital for 2011 = Current Assets for 2011 - Current Liabilities for 2011 = 33,800 - 17,100 = 16,700

Calculation of Change in Net Working Capital

Change in Net Working Capital = Net Working Capital for 2011 - Net Working Capital for 2010

= 16,700 - 17,500 = -800

Change in net working capital in amount is -800

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Category 2014 2015 Accounts payable 16,200 ???? Accounts receivable 48,600 44,500 Accruals 24,300 16,200 Cash 81,000...
Category 2014 2015 Accounts payable 16,200 ???? Accounts receivable 48,600 44,500 Accruals 24,300 16,200 Cash 81,000 98,000 Common Stock 64,800 81,000 COGS 56,700 64,800 Depreciation expense 0 4,300 Gross fixed assets 121,500 ???? Interest expense 6,400 8,100 Inventories 40,500 60,800 Long-term debt 81,000 89,100 Net fixed assets 101,500 121,500 Notes payable 44,800 37,200 Operating expenses (excl. depr.) 12,100 16,200 Retained earnings 40,500 60,800 Sales 105,300 121,500 Taxes 4,860 6,480 Solve: Please show me the steps The quick ratio in 2015...
Cash $6,500 Accumulated Depreciation—Equipment $1,400 Accounts Receivable 3,800 Accounts Payable 2,900 Inventory 1,700 * Common Stock...
Cash $6,500 Accumulated Depreciation—Equipment $1,400 Accounts Receivable 3,800 Accounts Payable 2,900 Inventory 1,700 * Common Stock 22,000 Equipment 20,200 Retained Earnings 5,900 $32,200 $32,200 *(3,400 x $0.50) The following transactions occurred during December. Dec. 3 Purchased 4,500 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,900 units of inventory on account for $0.92 per unit. (Blue sold 3,400 of the $0.50 units and 1,500 of the $0.70.) 7 Granted the December 5 customer $276...
Presented below is a list of balance sheet accounts. Accounts payable Land (in use) Accounts receivable...
Presented below is a list of balance sheet accounts. Accounts payable Land (in use) Accounts receivable Long-term investments Accumulated depreciation—buildings Notes payable (due in 6 months) Accumulated depreciation—equipment Notes receivable (due in 2 years) Allowance for uncollectible accounts Patent Bonds payable (due in 10 years) Preferred stock Buildings Prepaid expenses Cash Rent payable (current) Common stock Restricted cash (to be used in 10 years) Copyright Retained earnings Equipment Short-term investments Interest receivable (due in three months) Taxes payable Inventories Wages...
Accounts Payable $ 53,000   Accounts Receivable 30,800   Cash (balance on January 1, 2013) 108,900   Cash (balance...
Accounts Payable $ 53,000   Accounts Receivable 30,800   Cash (balance on January 1, 2013) 108,900   Cash (balance on September 30, 2013) 93,000   Common Stock 149,000   Dividends 0   Equipment 144,700   Income Tax Expense 10,900   Interest Expense 30,300   Inventory 18,000   Notes Payable 30,900   Prepaid Rent 7,800   Office Expense 15,100   Retained Earnings (beginning) 10,300   Salaries and Wages Expense 36,500   Service Revenue 153,800   Utilities Expense 25,900   Salaries and Wages Payable 16,000      Other cash flow information:     Cash from issuing common stock $ 29,000     Cash paid...
Accounts Payable $ 53,000   Accounts Receivable 30,800   Cash (balance on January 1, 2013) 108,900   Cash (balance...
Accounts Payable $ 53,000   Accounts Receivable 30,800   Cash (balance on January 1, 2013) 108,900   Cash (balance on September 30, 2013) 93,000   Common Stock 149,000   Dividends 0   Equipment 144,700   Income Tax Expense 10,900   Interest Expense 30,300   Inventory 18,000   Notes Payable 30,900   Prepaid Rent 7,800   Office Expense 15,100   Retained Earnings (beginning) 10,300   Salaries and Wages Expense 36,500   Service Revenue 153,800   Utilities Expense 25,900   Salaries and Wages Payable 16,000      Other cash flow information:     Cash from issuing common stock $ 29,000     Cash paid...
Auditing the accounts payable balance on the balance sheet
When auditing the accounts payable balance on the balance sheet, an auditor’s procedures most likely would focus primarily on management’s assertion of Select one:a. Existenceb. Rights and obligationsc. Presentation and disclosured. Completeness.
Prepare Income Statement and Balance Sheet from the following Accounts payable 249,750 Accounts receivable 777,000 Accumulated...
Prepare Income Statement and Balance Sheet from the following Accounts payable 249,750 Accounts receivable 777,000 Accumulated depreciation 416,250 Advertising expense 55,500 Allowance for doubtful accounts 57,665 Bad debt expense 41,070 Capital gains 12,210 Capital stock (common) 999,000 Cash 376,623 Charitable contributions 29,970 Compensation expense 1,443,000 Cost of goods sold 921,300 Depreciation expense 22,200 Dividends (paid) 88,800 Dividends (received) 13,320 Entertainment expense 6,771 Equipment 832,500 Federal income tax expense 278,388 Gain from disposition of fixed assets 4,496 Interest expense 68,820 Interest...
Prepare Income Statement and Balance Sheet from the following Accounts payable 249,750 Accounts receivable 777,000 Accumulated...
Prepare Income Statement and Balance Sheet from the following Accounts payable 249,750 Accounts receivable 777,000 Accumulated depreciation 416,250 Advertising expense 55,500 Allowance for doubtful accounts 57,665 Bad debt expense 41,070 Capital gains 12,210 Capital stock (common) 999,000 Cash 376,623 Charitable contributions 29,970 Compensation expense 1,443,000 Cost of goods sold 921,300 Depreciation expense 22,200 Dividends (paid) 88,800 Dividends (received) 13,320 Entertainment expense 6,771 Equipment 832,500 Federal income tax expense 278,388 Gain from disposition of fixed assets 4,496 Interest expense 68,820 Interest...
Category Prior year Current year Accounts payable 41,400 45,000 Accounts receivable 115,200 122,400 Accruals 16,200 13,500...
Category Prior year Current year Accounts payable 41,400 45,000 Accounts receivable 115,200 122,400 Accruals 16,200 13,500 Additional paid in capital 200,000 216,660 Cash ??? ??? Common Stock @ par value 37,600 42,000 COGS 131,400 175,511.00 Depreciation expense 21,600 23,085.00 Interest expense 16,200 16,974.00 Inventories 111,600 115,200 Long-term debt 135,000 138,052.00 Net fixed assets 378,667.00 399,600 Notes payable 59,400 64,800 Operating expenses (excl. depr.) 50,400 65,892.00 Retained earnings 122,400 136,800 Sales 255,600 335,712.00 Taxes 9,900 18,931.00 What is the current year's...
Category Prior year Current year Accounts payable 41,400 45,000 Accounts receivable 115,200 122,400 Accruals 16,200 13,500...
Category Prior year Current year Accounts payable 41,400 45,000 Accounts receivable 115,200 122,400 Accruals 16,200 13,500 Additional paid in capital 200,000 216,660 Cash ??? ??? Common Stock @ par value 37,600 42,000 COGS 131,400 175,511.00 Depreciation expense 21,600 23,085.00 Interest expense 16,200 16,974.00 Inventories 111,600 115,200 Long-term debt 135,000 138,052.00 Net fixed assets 378,667.00 399,600 Notes payable 59,400 64,800 Operating expenses (excl. depr.) 50,400 65,892.00 Retained earnings 122,400 136,800 Sales 255,600 335,712.00 Taxes 9,900 18,931.00 What is the current year's...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT