2. You are analyzing the balance sheet for Bed, Bath and Beyond, a retail firm that sells home furnishings, from February 26, 1995 (in millions):

Assets

Cash- $6.5

Rec. 3.1

Inventory 108.4

Current Assets 118.0

Fixed Assets 53.8

Total Assets $171.8

Liabilities

Accounts Payable $27.5

Other Current Liabities 18.6

Current Liabilties 46.1

Long term debt 16.8

equity 108.9

total liabilties $171.8

The firm had revenues of $440.3 million in 1994 and cost of goods sold of $249.2 million

a. estimate the net working capital

b. estimate non cash working capital

c. estimate the noncash working capital as a percent of revenues. If you were asked to estimate the noncash working capital needs for a new store for Bed, Bath, and Beyond, would you use this ratio? Why or why not?