Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rosnan Industries' 2 0 2 0 and 2 0 1 9 balance sheets and income statements are shown below. Balance Sheets: 2 0 2 0

Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below.
Balance Sheets:
20202019
Cash and equivalents $120 $105
Accounts receivable 275300
Inventories 375250
Total current assets $770 $655
Net plant and equipment 2,3001,490
Total assets $3,070 $2,145
Accounts payable $150 $85
Accruals 7550
Notes payable 17095
Total current liabilities $395 $230
Long-term debt 450290
Common stock 1,2251,225
Retained earnings 1,000400
Total common equity $2,225 $1,625
Total liabilities and equity $3,070 $2,145
Income Statements:
20202019
Sales $2,285 $1,585
Operating costs excluding depreciation 1,2501,000
EBITDA $1,035 $585
Depreciation and amortization 10075
EBIT $935 $510
Interest 6346
EBT $872 $464
Taxes (25%)218116
Net income $654 $348
Dividends paid $54 $48
Addition to retained earnings $600 $300
Shares outstanding 100100
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 2020 net operating working capital (NOWC)? Round your answer to the nearest dollar.
$
Show All Feedback
What is Rosnan's 2020 net working capital (NWC)? Round your answer to the nearest dollar.
$
Show All Feedback
Check My Work

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_2

Step: 3

blur-text-image_3

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

Mastering Attribution In Finance

Authors: Andrew Colin

1st Edition

1292114029, 978-1292114026

More Books

Students also viewed these Finance questions

Question

(3) Who is performing well and who is not performing well?

Answered: 1 week ago

Question

(1) What do they do well?

Answered: 1 week ago