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The balance in the firm's cash and equivalents account is needed for operations and is not considered excess cash. What is Rosnan's 2013 net operating
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash. What is Rosnan's 2013 net operating working capital (NOWC)?
Quantitative Problem: Rosnan industries 2015 and 2012 balance sheets and income statements are shown below Balance Sheets: 2013 2012 Cash and equivalents Accounts receivable Inventories $60 275 375 $710 2,000 $2,710 300 350 $695 1,490 $2,185 Total current assets Net plant and equipment Total assets Accounts payable Accruals Notes payable $150 75 110 $335 450 1,225 700 $2,710 $85 135 $270 290 1,225 400 $2,185 Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: 2013 2012 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income $2,000 1,250 $750 100 $650 62 $588 235 $353 $1,500 1,000 $500 75 $425 45 $380 152 $228 Dividends paid Addition to retained earnings $53 $48 $300 $180 Shares outstanding Price WACC 100 $25.00 10.00% 100 $22.50Step by Step Solution
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