Question

In: Finance

Prezas Company's balance sheet showed total current assets of $2,750, all of which were required in...

Prezas Company's balance sheet showed total current assets of $2,750, all of which were required in operations. Its

current liabilities consisted of $975 of accounts payable, $600 of 6% short

-term notes payable to the bank, and

$250 of accrued wages and taxes. What was its net operating working capital?

A.

$1,281

B.

$1,525

C.

$1,190

D.

$1,235

E.

$1,586

Expert Solution

Answer Option B $1,525

Calculations:

Net operating working capital = Current assets - Operating current liabilities

= $2,750 - $1,225

= $1,525

*Operating current liabilities = Accounts payable + Accrued wages and taxes

= $975 + $250

= $1,225

*Notes payable is not a typical liability, it is not considered as an operating current liability, so this is not included in operating current liabilities for the calculation of Net operating working capital.

jeff jeffy answered 1 year ago

Balance the budget sheet: Current Assets: Total Current Assets: Property and equipment: Other assets: Total Assets:...

Balance the budget sheet: Current Assets: Total Current Assets: Property and equipment: Other assets: Total Assets: Current liabilities: Total Current Liabilities: Total Liabilities: Share holders equity Total Liabilities & Share holders Equity: Instructions: Please place the following items and amounts in their correct locations on the balance sheet Accounts payable $30,000 Accounts receivable $20,000 Investments $10,000 Common stock $10,000 Additional paid-in capital $20,000 Prepaid expense $4,000 Cash and cash equivalents $100,000 Deferred revenue $2,000 Notes payable $10,000 Inventory $15,000 Retained...

A firm’s 2016 balance sheet showed current assets of $1,700 and current liabilities of $800. Its...

A firm’s 2016 balance sheet showed current assets of $1,700 and current liabilities of $800. Its 2017 balance sheet showed current assets of $2,500 and current liabilities of $4,000. What was the firm’s 2017 increase in net working capital?

At the beginning of the current year, Trenton Company's total assets were 258,000 and its total...

At the beginning of the current year, Trenton Company's total assets were 258,000 and its total liabilities were 180,000 during the year the company reported total revenues of 103,000, total expenses of 81,000 and dividends of 10,000. There were no other changes in equity during the year and total assets at the end of the year were 270,000. Trenton Company's debt ratio at the end of the current year is. A 50.0%. B 1.50%. C 66.7% D 33.3% E 69.8%

You are examining a company's balance sheet and find that it has total assets of $21,156,...

You are examining a company's balance sheet and find that it has total assets of $21,156, a cash balance of $2,424, inventory of $5,169, current liabilities of $6,341 and accounts receivable of $2,935. What is the company's net working capital? Multiple Choice $4,187 $1,763 $982 $6,151 $14,815

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $204,000 and...

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $204,000 and Total Liabilities of $78,500. During the year, the company reported total revenues of $237,000 and expenses of $183,500. Also, owner withdrawals during the year totaled $50,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice $176,000. $129,000. $201,500. $123,000. $126,000.

At the beginning of the year, a company's balance sheet reported the following balances: Total Assets...

At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $165,000; Total Liabilities = $24,300; Total Paid-in capital of $56,700; and Retained earnings = $84,000. During the year, the company reported revenues of $49,600 and expenses of $32,400. In addition, dividends for the year totaled $21,600. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and...

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and Total Liabilities of $113,500. During the year, the company reported total revenues of $347,000 and expenses of $268,500. Also, owner withdrawals during the year totaled $70,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice $189,000. $256,000. $186,000. $296,500. $183,000.

Please show all work. 1. Balance Sheet a) A firm has total assets of $280000, current...

Please show all work. 1. Balance Sheet a) A firm has total assets of $280000, current assets of $76,000, current liabilities of $71,000 and total liabilities of $130,000. ◦ What is shareholders equity? ◦ What is the net working capital (NWC)? ◦ What is the value of the long-term assets? Assets = Liabilities + Stockholders’ Equity NWC = Current Assets – Current Liabilities Total Assets = Current Assets + Long-Term Assets b) The balance sheet of Global Mills shows cash...

Calculate total current assets and total current liabilities that would appear in the company’s year-end balance sheet.

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2018, the end of its fiscal year:cash, $16,000accounts receivable, $11,000inventories, $25,000equipment (net), $80,000accounts payable, $14,000wages payable, $9,000interest payable, $1,000note payable (due in 18 months), $30,000common stock, $50,000Calculate total current assets and total current liabilities that would appear in the company’s year-end balance sheet.

Rajan Company's most recent balance sheet reported total assets of $1.98 million, total liabilities of $0.76...

Rajan Company's most recent balance sheet reported total assets of $1.98 million, total liabilities of $0.76 million, and total equity of $1.22 million. Its Debt to equity ratio is: 0.47 0.38 1.61 0.62 1.00