Question 11 0.5 pts What is the amount of Working Capital (NWC) for the later year (ending year): 295 none of the choices are correct o 40 335 Question 12 0.5 pts What is the amount of Working Capital (NWC) for the earlier year (beginning year): 335 295 Ooo none of the choices are correct 40 Table 2.1 Unilate Textiles: December 31 Balance Sheets (S millions, except per-share data) 2018 2017 Amount Percentage of Total Assets Amount Percentage of Total Assets 5.3% 213 $ 150 1800 270.0 $4650 3800 58450 213 32.0 550 Assets Cash and equivalents Accounts receivable Inventory Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable $ 400 1600 2000 $400.0 3500 $7500 53.3 10004 1000 $ 300 204 73 5 150 550 350 51050 140% 340 Notes payable Total current liabilities Long-term bonds Total abilities (debo Common stock (25 million shares) Retained earnings Total common equity Total abilities and equity 400 51300 3000 $430,0 1300 2850 54150 $845.0 15.4% 355 50.99 15.4 327 49.1% 100096 $360,0 1300 2600 3900 57500 173 347 52.0 10000 516,60 $23.00 $15.00 $25.00 Book value per share= (Common equity/Shares Market value per share stock price Additional Information Net working capital Current assets - Current abilities Net worth - Total assets - Total abilities $335.0 4150 $2950 3900 Breakdown of net plant and equipment account: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment $680.0 (3000) $3800 $6000 2500 $350,0 debt. However, because the firm probably would not be able to sell all of the assets at the values shown on the balance sheet, common stockholders actually would re- ceive some amount different (higher or lower) from that shown in the equity section if the firm were actually liq- uidated. Thus, the risk of asset value fluctuations (both positive and negative) is borne by the stockholders. Yote that in Table 2 the assets are listed in order example, accounts payable generally must be paid within 30 to 45 days, accruals are payable within 60 to 90 days. and so on, down to the stockholders' equity accounts which represent ownership that never needs to be repaid Often assets, liabilities, and equity are reported botu in dollars and as a percentage of total assets, as shown in Table 2.1. This type of balance sheet is termed common size Dam (5 millions, except per share data) 2018 Percentage of Total Sales Amount 51.435.0 Amount 545000 11.2300 $ 2200 (900 1820 52583 85.0 Unilate Textiles: Income Statements for Years Ending December 31 accounting and the matching principle. That is, revenues are recognized when they are earned, not when the cash is received, and expenses are recognized when they are incurred, not when the cash is paid. As a result, not all of the amounts shown on the income statement represent cash flows. However, as we mentioned in Chapter 1, the value of an investment, such as the firm's stock price, is determined by the cash flows it generates. Therefore, Table 22 shows that Unilate's net income for 2018 although the firm's net income is important, cash flows are even more important because cash is needed to co tinue normal business operations, including the payment of financial obligations, the purchase of sets, and the payment of dividends. As a result, in finance we los Table 2.2 2017 Percentage of Total Sales 100.0% 1820 Net Sales 18.0% Variable operating costs 82% of sales (59) Gross profit Pred operating costs, except depreciation 1733 12.196 Earnings before interest.es 12.09 51800 400 (28) depreciation and amortization (EBITDA) Depreciation 9.39 1333 Net operating income (NOO - Earnings before interest and taxes (EBIT) $1300 (24) 350 400 983 6.99 $ 900 Earnings before taxes (EBT) 360 39.31 Net income 540 $59.0 4.196 Preferred dividends 00 0.0 Earnings available to common stockholders (EAO 5 540 $59.0 Common dividends Addition to retained earnings 270 $250 5320 Pershare data (25,000,000 shares: Earnings per share - (EAC/Shares $216 Dividends per share= (Common dividends/Shares $ 116 $ $ year de fles rather than net income. 27 236 1.08 the asset is originally purchased. However, because asset is used to generate revenues and its life exter for more than one year, depreciation is the meth that is used to match the expense associated w the decrease in the value of the asset to the year which revenues are generated by its use. For exam $54 million and the depreciation expense for the 850 million. Because depreciation was not an expo that required a cash payment during the net cash now must be at lo the $54 milli