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Swinnerton Clothing Company's balance sheet showed total current assets of $2,900, all of which were required in operations. Its current liabilities consisted of $575 of
Swinnerton Clothing Company's balance sheet showed total current assets of $2,900, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors? Select the correct answer. a. $2,200 b. $2,190 c. $2,180 d. $2,185 e. $2,195 LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $815,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant? Select the correct answer. a. 4.30% b. 5.03% c. 5.76% d. 3.57% e. 2.84%
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