Question
Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash. . . . . . . . . . . . . . . . .
Balance Sheet | ||||
Assets | Liabilities | |||
Current Assets | Current Liabilities |
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Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 48 | Accounts payable. . . . . . . . . . . . . . . . . . . | 35 | |
Accounts receivable. . . . . . . . . . . . . . . . . . . . . | 23 | Notes payable/short term debt. . . . . . . . . . | 6 | |
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . | 17 | Total current liabilities. . . . . . . . . . . . . . . . . . | 41 | |
Total current assets. . . . . . . . . . . . . . . . . . . | 88 |
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Long-Term Assets | Long-Term Liabilities |
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Net property, plant, and equipment. . . . . . . . | 122 | Long-term debt. . . . . . . . . . . . . . . . . . . . . | 135 | |
Total long-term assets. . . . . . . . . . . . . . . . . | 122 | Total long-term liabilities. . . . . . . . . . . . . . | 135 | |
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| Total liabilities. . . . . . . . . . . . . . . . . . . . . . . | 176 | |
Stockholders' Equity. . . . . . . . . . . . . . . . . . | 34 | |||
Total assets. . . . . . . . . . . . . . . . . . . . . . . . | 210 | Total liabilities and stockholders' Equity | 210 | |
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The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?
a-47 million
b- 1 million
c- -1 million
d-5 million
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