Question
Table A shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company buys new property, plant
Table A shows a balance sheet for a certain company. All quantities shown are in millions of dollars. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be (in million of USDs)? Note: Express your answers in strictly numerical terms, and IN million of USDs."
TABLE A | |||
Balance Sheet (in million of USDs) | |||
Assets | Liabilities | ||
Current Assets | Current Liabilities | ||
Cash | 20 | Accounts payable | 80 |
Accounts receivable | 62 | Notes payable/short-term debt | 11 |
Inventories | 30 | ||
Total current assets | 112 | Total current liabilities | 91 |
Long-Term Assets | Long-Term Liabilities | ||
Net property, plant, and equipment | 140 | Long-term debt | 40 |
Total long-term assets | 140 | Total long-term liabilities | 105 |
Total Liabilities | 196 | ||
Stockholders' Equity | 56 | ||
Total Assets | 252 | Total Liabilities and Stockholders' Equity | 252 |
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