Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firms balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars. Dec. 31, 2011 Dec. 31,

A firms balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars.

Dec. 31, 2011 Dec. 31, 2012
Accounts receivable 36.9 33.8
Inventories 30.9 26.8
Accounts payable 26.9 13.8

a.

Calculate the net working capital in 2011. (Enter your answer in millions rounded to 1 decimal place.)

Net working capital $ million

b.

Calculate the net working capital in 2012. (Enter your answer in millions rounded to 1 decimal place.)

Net working capital $ million

c.

What happened to investment in net working capital during 2012? (Input the amount as a positive value. Enter your answer in millions rounded to 1 decimal place.)

Net working capital has (Click to select) increased decreased by $ million.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Future For Investors

Authors: Jeremy Siegel

1st Edition

140008198X, 978-1400081981

More Books

Students also viewed these Finance questions