FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Is there a reason why Trade Receivables (asset on balance sheet) would be excluded from the Change in Net Operating Working Capital calculation? The background

Is there a reason why "Trade Receivables" (asset on balance sheet) would be excluded from the Change in Net Operating Working Capital calculation?

The background behind the question is we are trying to get to Free Cash Flow to the Firm. We have NOPAT, Depreciation and Amortization, and Capital Expenditures. We need the Change in NWC, but curious as to why "Trade Receivables" would be excluded from the Change in Net Operating Working Capital?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

S Corporation Tax Secrets Maximizing Benefits For Small Business Owners

S Corporation Tax Secrets Maximizing Benefits For Small Business Owners

Authors: Ethan Reynolds

1st Edition

B0C87DH1ZD, 979-8398337044

More Books

Students also viewed these Accounting questions

Question

★★★★★
Compute the initial slope dI/dt at t = 0 from Equation 30-24, and show that if the current decreased steadily at this rate, it would be zero after one time constant. 30-24 1= 1,e Rl. = 1,et

Answered: 1 week ago

Question

★★★★★
UL W e n cial Account Statistics Sharing Link Valida... Test 3 Saved Help Save & Exit Submit Required information (The following information applies to the questions displayed below.) Part 1 of 2 A...

Answered: 1 week ago

Question

★★★★★
1. Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the following table. LO3.2 a. Fill in the...

Answered: 1 week ago

Question

★★★★★
Casagrande Company is currently operating at 80 percent capacity. Worried about the companys performance, Mike, the general manager, reviewed the companys operating performance. (The sales and...

Answered: 1 week ago

Question

★★★★★
ABC Company uses a perpetual inventory system and Last-in, first-out (LIFO) method. ABC Company made the following purchases of a particular product during the year. Purchase Date Quantity Unit Cost...

Answered: 1 week ago

Question

★★★★★
Tony rents a small shop where he stores his work equipment and tools. He is a landscape gardener, but he lives in a small apartment. He has no space to put his equipment. His lease is for 3 years...

Answered: 1 week ago

Question

★★★★★
Ms. Brooh Hah decided to invest in the salon business and named her salon "The Broohah Luk Salon". The follow salon's transactions for the month of November. Journalize The transactions and post the...

Answered: 1 week ago

Question

★★★★★
Question 1 Jack consumes only Bread (good x) and Cheese (good y). His utility function is given by U(x, y) = ln(x) + ln(y) (a) Find Jack's marginal rate of substitution (MRS) at bundle (x, y) (2...

Answered: 1 week ago

Question

★★★★★
English answering will be fine Temps restant: 01:01:41 On considre le plan qui possde la reprsentation scalaire suivante: (a) Donnez un point appartenant ce plan. Rponse : 5x+2y-3z=-7. (b) Donnez un...

Answered: 1 week ago

Question

★★★★★
A hedge fund is positive on the credit evolution of acompany (improvement of creditworthiness)and rather than buying bonds, he decides togetexposure through the credit derivatives market. He trades...

Answered: 1 week ago

Question

★★★★★
Please provide answers in good accounting form. Thank you! Problem 1 On August 31 2021, DASHER Company issued at 104 plus accrued interest, three thousand 10% bonds with a face amount of 1 000 per...

Answered: 1 week ago

Question

★★★★★
=+describes the product and the sale. Be sure to include a link back to the website so your Twitter followers can learn more.

Answered: 1 week ago

Question

★★★★★
=+6. Media Skills: Podcasting [LO-6] Youve recently begun recording a weekly podcast to share information with your large and far-flung staff. After a month, you ask for feedback from several of your...

Answered: 1 week ago

Question

★★★★★
=+of the Knitting-Warehouse website at www.knitting-warehouse.com, select any product that catches your eye, and write a Twitter update that

Answered: 1 week ago

Previous Question Next Question