Question
Balance Sheet (in million of USDs) Assets Liabilities Current Assets Current Liabilities Cash 54 Accounts payable 42 Accounts receivable 20 Notes payable/short-term debt 6 Inventories
Balance Sheet (in million of USDs) | |||
Assets | Liabilities | ||
Current Assets | Current Liabilities | ||
Cash | 54 | Accounts payable | 42 |
Accounts receivable | 20 | Notes payable/short-term debt | 6 |
Inventories | 16 | ||
Total current assets | 90 | Total current liabilities | 48 |
Long-Term Assets | Long-Term Liabilities | ||
Net property, plant, and equipment | 120 | Long-term debt | 129 |
Total long-term assets | 120 | Total long-term liabilities | 129 |
Total Liabilities | 177 | ||
Stockholders' Equity | 33 | ||
Total Assets | 210 | Total Liabilities and Stockholders' Equity | 210 |
The above table shows a balance sheet for a certain company. All quantities shown are in millions of dollars.
If the company pays back all of its accounts payable today using cash, what will its net working capital be (in million of USDs)? If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be (in million of USDs)?
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