Hello. I needed help with these questions. Please show work for each problem
Q1. Swinnerton Clothing Company NOWC Calculation
Swinnerton Clothing Company's balance sheet showed total current assets of $2,250, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors?
Q2. Danielle's Sushi Shop last year had (1) a negative net cash flow from operations, (2) a negative free cash flow, and (3) an increase in cash as reported on its balance sheet. Which of the following factors could explain this situation?
| | a. The company made a large capital investment early in the year. |
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| | b. The company had a sharp increase in its accrued liabilities. |
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| | c. The company had a sharp increase in its inventories. |
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| | d. The company sold a new issue of common stock. |
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| | e. The company had a sharp increase in its depreciation and amortization expenses. |
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Q3 Calculate Free Cash Flow
TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?
