/servlet/quiz?quiz action-takeQuiz8iquiz probGuid-ONAPCOA8010100000041cdaa100a00
ID: 1172294 • Letter: #
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/servlet/quiz?quiz action-takeQuiz8iquiz probGuid-ONAPCOA8010100000041cdaa100a00008kctx-robert2-00398ck-m Last year, J&H; Corp. reported a book value of S650 million in current assets, of which 15% is cash, 17% is short-term investments, and the rest is accounts receivable and inventory The company reported $552.5 milion of current liablities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period The company, however, Invested heavlly in plant and equipment to support its operations. It reported a book value of $1,040 million in long-term assets last year. Income Statement For the Year Ended on December 31 (Millions of dollars) Industry J&H; Corp. Average Net sales $2,700 2,160 108 2,268 $432 43 $3,375 Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income 2,700 135 2,835 $540 81 $459 184 $275 389 156 $233 Based on the information given to Jeffrey, he submits a report on January I with some impartant calculations for management to use, both for analysis and to devise an action plan, Which of the folilowing statements in his report are true? Check all that apply ? &H; Corp.'s total net operating capital consists ot its net operating working capital, and total investment in long-term assets e company is using-$13.0 million in net operating working capital acquired by investor-supplied funds. Based on the information on industry averages, other players in the industry would generate higher than J&H; Corp. if they had no debt and held no financial assets J8H Corp. has $246.2 million of net operating capical, The company has no notes payable reported in its balence sheet, so allits current liablities are its operating liabilities.Explanation / Answer
True sentences:
1. J& H corp’s total net working capital consists of its net operating capital and total investment in long term assets
2. The company is using (-$13 M) in net operating working capital acquired by investor supplied fund
5. The company has no notes payable reported in balance sheet, so all its current liabilities are its operating liabilities
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