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ABC Inc.'s balance sheet showed total current assets of $1,725,000 plus $4,700,000 of net fixed assets. All of these assets were required in operations. The
ABC Inc.'s balance sheet showed total current assets of $1,725,000 plus $4,700,000 of net fixed assets. All of these assets were required in operations. The firm's current liabilities consisted of $4,000,000 of accounts payable, $375,000 of 6% short-term notes payable to the bank, and $1,390,000 of accrued wages and taxes. Its remaining capital consisted of long-term debt and common equity. What was ABC's total investor-provided operating capital?
a. $1,012,500b. $660,000c. $1,035,000d. $6,425,000e. $637,500Step by Step Solution
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