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Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 Cash and equivalents $60 $45 Accounts receivable 275
Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.
Balance Sheets: | |||
2018 | 2017 | ||
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: | |||
2018 | 2017 | ||
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 2018 net operating working capital (NOWC)? Round your answer to the nearest dollar. $
What is Rosnan's 2018 net working capital (NWC)? Round your answer to the nearest dollar. $
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