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12:17 SmartBook Chapter 12 Question Completion Status: QUESTION 9 10 points Save Answer Taking a closer look at the Balance Sheet- Read Section 3-2A (1.
12:17 SmartBook Chapter 12 Question Completion Status: QUESTION 9 10 points Save Answer Taking a closer look at the Balance Sheet- Read Section 3-2A (1. Cash versus other assets, 2. Working Capital, and 3. Total debt versus total liabilities) Then answer the next several questions. The term "working capital refers to current assets. You can think of those assets as capital that works throughout the year. The term "net" often refers to cases when costs or other items, like liabilities) are subtracted out. So Net Working Capital represent Current Assets net of Current Liabilities. Solve for the net working capital below by following three steps 1. Consider a firm with $701 in Cash, S1,460 in Accounts Receivable, $4,015 in Inventory $8,779 in Property, Plant and Equipment. Calculate the Current Assets of the firm (be careful about what is included in Current Assets) 2. The same firm has $413 in Accurals, $590 in Accounts Payable, $2,817 in Notes Payable, $6,856 in Long term Debt and $2,120 in Retained Earnings. Calculate the Current Liabilities of the firm . (be careful about what is included in Current Liabilities) 3. Now that you have Current Assets and Current Liabilites, use the formula from Section 3-2A to find Net Working Capital Net Working Capital = Current Assets - Current Liabilities Include your asnwer in dollars with no decimal example ($5040 or 5040 are both acceptable notation) Click Save and Submit to save and submit. Chick Save All Answers to save all answers. Save All Answers Save and Submit
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