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7. Analyzing accounting data for managerial decisions Accounting data are used to analyze cash flows, and this analysis is critical for decision making. Consider the

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7. Analyzing accounting data for managerial decisions Accounting data are used to analyze cash flows, and this analysis is critical for decision making. Consider the following case: 38H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's finandal reports as well as some industry averages. - Last year, j3H Corp. reported a book value of $350 million in current assets, of which 40% is cash, 42% is short-term investments, and the rest is accounts receivable and inventory. - The company reported $297.5 milion of current liabilities 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 heavily in plant and equipment to support its operations. It reported a book value of $560 million in Iong-term assets last year. Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true? Check all that apply. j\&H Corp. has - $94.5 million of noninterest-bearing current assets net of noninterest-charging liabilities. 18. Corp. has $147.0 million in nonoperating assets. Based on the information on industry averages, other players in the industry would generate higher profits than JiH Corp. if they had no debt and held no finandial assets. 38H Corp. has $260.7 million of net operating capital. The firm uses $465.5 million of total net operating capital to run the business

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