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1. Calculating working capital Mum's Tavern Corp.'s CFO has decided to take a closer look at the firm's short-term assets and liabilities. Mum's Tavern Corp.'s
1. Calculating working capital Mum's Tavern Corp.'s CFO has decided to take a closer look at the firm's short-term assets and liabilities. Mum's Tavern Corp.'s balance sheet follows Balance Sheet Cash Accounts receivable Inventory Total current assets $225,000 $135,000 $165,000 $525,000 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total common equity Total liabilities and equity $150,000 $90,000 $140,000 $380,000 $300,000 $345,000 $1,025,000 Net plant and equipment $500,000 $1,025,000 Total assets The value of Mum's Tavern Corp.'s working capital is , while its net working capital is The value of Mum's Tavern Corp.'s net operating working capital is Mum's Tavern Corp.'s current ratio is If Mum's Tavern Corp. decides to purchase inventory on account, its current ratio will
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