Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following income statement and balance sheet, how much was Jones Corporation's net operating working capital in 2018? 2018 2017 Jones Corporation Income Statements

image text in transcribed

Given the following income statement and balance sheet, how much was Jones Corporation's net operating working capital in 2018? 2018 2017 Jones Corporation Income Statements $68,750 $62,500 Sales $58,500 $53,125 Operating costs excluding depreciation $2,375 $2,250 Depreciation and amortization $7,875 $7,125 Earnings before interest and taxes $750 $625 Less interest $6,500 Pre-tax income $7,125 Taxes (40%) $2,850 $2,600 $4,275 $3,900 Net income available to common stockholders $1,375 $1,250 Common dividends Jones Corporation Balance Sheets 2018 2017 Assets $3,438 $3,125 Cash $688 $625 Short-term investments $17,188 $15,625 Accounts receivable $9,375 $10,313 Inventories $31,625 $28,750 Total current assets $24,063 $21,875 Net plant and equipment $55,688 Total assets $50,625 Liabilities and Equity Accounts payable $6,250 $6,875 $3,438 Accruals $3,125 $2,400 $1,250 Notes payable $12,713 $10,625 Total current liabilities $6,875 $6,250 Long-term debt Total liabilities $19,588 $16,875 $26,950 $27,500 Common stock Retained earnings $6,250 9,150 $33,750 Total common equity $36,100 Total liabilities and equity $55,688 $50,625

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions