The Nuh Systems has the following balance sheet. How much net working capital do

Question

The Nuh Systems has the following balance sheet. How much net working capital does the firm have?

$ 100

$   200

    650

75

550

625

$ 1,300

$ 900

$ 1,000

600

300

500

$ 2,300

$ 2,300

$1,169

$400

$1,138

$1,025

$1,179

Cash

$ 100

Accounts payable

$   200

Accounts receivable

    650

Accruals

75

Inventory

550

     Notes payable

625

   Current assets

$ 1,300

   Current liabilities

$ 900

Net fixed assets

$ 1,000

Long-term debt

600

Common equity

300

Retained earnings

500

Total assets

$ 2,300

Total liab. & equity

$ 2,300

Explanation / Answer

2) Is the answer

400 is the answer

Here we must ignore current assets and liabilities becasue they are capital investments not working capital

Caital investments are strategic investments and cannot be coupled with current working capital, company can make money in futrue when raw material prices decreases. ( FYI Just for Info)

So we add up

100+600+550=1300 is current capital

Then we substract

200+75+625=900

1300-900=400

400 is current working capital.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.