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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets 2019 2018 Assets Cash and equivalents $120 $105

Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.

Balance Sheets
2019 2018
Assets
Cash and equivalents $120 $105
Accounts receivable 275 300
Inventories 375 250
Total current assets $770 $655
Net plant and equipment 2,300 1,490
Total assets $3,070 $2,145
Liabilities and Equity
Accounts payable $150 $85
Accruals 75 50
Notes payable 170 95
Total current liabilities $395 $230
Long-term debt 450 290
Common stock 1,225 1,225
Retained earnings 1,000 400
Total liabilities and equity $3,070 $2,145

Income Statements
2019 2018
Sales $2,285 $1,585
Operating costs excluding depreciation 1,250 1,000
EBITDA $1,035 $585
Depreciation and amortization 100 75
EBIT $935 $510
Interest 63 46
EBT $872 $464
Taxes (25%) 218 116
Net income $654 $348
Dividends paid $54 $48
Addition to retained earnings $600 $300
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 2019 net operating working capital (NOWC)?

$

What is Rosnan's 2019 net working capital (NWC)?

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