Quantitative Problem Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below Balance Sheets 2013 2012 Cash and equivalents $60 $45 Accounts receivable 275 300 Inventories 375 350 Total current assets $710 $695 Net plant and equipment 2,000 1,490 Total assets $2,710 $2,185 Accounts payable $150 $85 Accruals 75 50 Notes payable 110 135 Total current liabilities $335 $270 Long term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,710 $2,185 Income Statements 2013 2012 Sales $2,000 $1,500 Operating costs excluding depreciation 1,250 1,000 EBITDA $750 $500 Depreciation and amortization 100 75 EBIT $650 $425 Interest 62 45 EBT $588 $380 Taxes (40 ) 235 152 Net income $353 $228 Dividends paid $53 $48 Addition to retained earnings $300 $180 Shares outstanding 100 100 Price $25 00 $22 50 WACC 10 00 The balance in the firm's cash and equivalents account is needed for operations and is not considered excess cash What is Rosnan's 2013 net operating working capital (NOWC)

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Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below. Balance Sheets: 2013 2012 Cash and equivalents $60 $45 Accounts

Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.

Balance Sheets:
	2013	2012
Cash and equivalents	$60	$45
Accounts receivable	275	300
Inventories	375	350
Total current assets	$710	$695
Net plant and equipment	2,000	1,490
Total assets	$2,710	$2,185

Accounts payable	$150	$85
Accruals	75	50
Notes payable	110	135
Total current liabilities	$335	$270
Long-term debt	450	290
Common stock	1,225	1,225
Retained earnings	700	400
Total liabilities and equity	$2,710	$2,185

Income Statements:
	2013	2012
Sales	$2,000	$1,500
Operating costs excluding depreciation	1,250	1,000
EBITDA	$750	$500
Depreciation and amortization	100	75
EBIT	$650	$425
Interest	62	45
EBT	$588	$380
Taxes (40%)	235	152
Net income	$353	$228

Dividends paid	$53	$48
Addition to retained earnings	$300	$180

Shares outstanding	100	100
Price	$25.00	$22.50
WACC	10.00%

The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash. What is Rosnan's 2013 net operating working capital (NOWC)?