Question

In: Finance

A firm has $200,000 in current assets, $800,000 in long-term assets and $900,000 in long-term financing....

A firm has $200,000 in current assets, $800,000 in long-term assets and $900,000 in long-term financing. What is its net working capital (CA -CL)? Hint: Prepare a Balance Sheet.

Solutions

Expert Solution

Liabilities Amount ($) Assets Amount ($)
Long term financing 900000 Long term assets 800000
Current Liabilities(balancing figure) 100000 Current Assets 200000
Total 1000000 1000000

Net working capital=Current Assets-Current Liabilities=$200000-100000=$100000.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

The Mexican subsidiary of US firm has current assets of Peso 1mn, long term assets of...
The Mexican subsidiary of US firm has current assets of Peso 1mn, long term assets of Peso 4mn, current liabilities of Peso 400,000 and long term liabilities of Peso 1.5mn. If the Peso appreciated during a year from $0.05249 to $0.05312. Under FASB-52, what is the translation gain (loss) in dollar if peso is the functional currency? a. $ 0 b. $ 1,575 loss c. $ 378 gain d. $ 1,953 gain
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
Apple has no long term debt, how is the firm managing its long term financing without...
Apple has no long term debt, how is the firm managing its long term financing without debt?
A firm has a long-term debt–equity ratio of .4. Shareholders’ equity is $1 million. Current assets...
A firm has a long-term debt–equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and total assets are $1.5 million. If the current ratio is 2.0, what is the ratio of debt to total long-term capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Debt to long-term capital ____ % 28.6% and 28.57% is not a correct answer
With explanation 1. The overall cost of long-term financing for the firm is called the: a....
With explanation 1. The overall cost of long-term financing for the firm is called the: a. Weighted average cost of capital b. Cost of preferred stock c. Retained earnings breakpoint d. None of the given choices 2. The overall weighted average cost of capital is used instead of costs for specific sources of funds because a. The use of the cost for specific sources of capital would make investment decisions inconsistent b. A project with the highest return would always...
With explanation 1. The overall cost of long-term financing for the firm is called the: a....
With explanation 1. The overall cost of long-term financing for the firm is called the: a. Weighted average cost of capital b. Cost of preferred stock c. Retained earnings breakpoint d. None of the given choices 2. The overall weighted average cost of capital is used instead of costs for specific sources of funds because a. The use of the cost for specific sources of capital would make investment decisions inconsistent b. A project with the highest return would always...
Ruskin has the following balance sheet: Current assets $30,000,000, Current liabilities $10,000,000, Fixed assets 60,000,000, Long-term...
Ruskin has the following balance sheet: Current assets $30,000,000, Current liabilities $10,000,000, Fixed assets 60,000,000, Long-term debt 25,000,000, Common stock (1 million shares) 1,000,000, Retained earnings 39,000,000, Preferred Stock 15,000,000, Total assets $90,000,000, Total claims $90,000,000. The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company’s...
Bing, Incorporated, has current assets of $4,750, net fixed assets of $23,900, current liabilities of $3,000, and long-term debt of $13,400.
Bing, Incorporated, has current assets of $4,750, net fixed assets of $23,900, current liabilities of $3,000, and long-term debt of $13,400.a. What is the value of the shareholders' equity account for this firm? (Do not round intermediate calculations.)b. How much is net working capital? (Do not round intermediate calculations.)a. Shareholders' equity _____b. NWC ______
Bing, Incorporated, has current assets of $4,750, net fixed assets of $23,900, current liabilities of $3,000, and long-term debt of $13,400.
Bing, Incorporated, has current assets of $4,750, net fixed assets of $23,900, current liabilities of $3,000, and long-term debt of $13,400.a. What is the value of the shareholders' equity account for this firm? (Do not round intermediate calculations.)b. How much is net working capital? (Do not round intermediate calculations.)a. Shareholders' equity _____b. NWC ______
Arredondo, Inc., has current assets of $2,076, net fixed assets of $10,157, current liabilities of $684, and long-term debt of $1,753.
 Arredondo, Inc., has current assets of $2,076, net fixed assets of $10,157, current liabilities of $684, and long-term debt of $1,753. What is the value of the shareholders’ equity account for this firm?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT