Question
If you have the following items Revenues 10,000 Salary expense 12,400 Inventory 13,000 Other fixed assets 1,208 Net Property, plant, and equipment 15,000 Common stocks
If you have the following items
Revenues | 10,000 |
Salary expense | 12,400 |
Inventory | 13,000 |
Other fixed assets | 1,208 |
Net Property, plant, and equipment | 15,000 |
Common stocks (equity) | 7,178 |
Prepaid expenses | 14,000 |
Short-term investments | 12,000 |
Accounts payable | 8,060 |
Short-term loans | 4,000 |
Accrued salaries and wages | 31,000 |
Retained earnings | 23,000 |
Cash | 11,874 |
Accounts receivable | 12,000 |
Long-term debt | 3,500 |
Calculate: 1-Total assets
2-Total short term liability
3-Total equity
4-Net working capital
5-Based on your answer in Q 5 what is the meaning of "Net working capital". How can we calculate it? What is the importance of this item? (in 3 lines)
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