Question
The Corrigan corporations 2018 and 2019 financial statements follow: Corrigan Corporation December 31 Balance Sheets (in thousands) 2019 2018 Assets Cash and cash equivalents $72,000
The Corrigan corporations 2018 and 2019 financial statements follow: Corrigan Corporation December 31 Balance Sheets (in thousands) 2019 2018 Assets Cash and cash equivalents $72,000 $65,000 Accounts Receivable 549,000 438,000 Inventories 894,000 813,000 Total current assets $1,515,000 $1,316,000 Net fixed assets 500,000 300,000 Total assets $2,015,000 $1,616,000 Liabilities and equity Accounts payable $80,000 $72,708 Notes payable 476,990 457,912 Total current liabilities $556,990 $530,620 Long-term debt 404,290 268,898 Total liabilities $961,280 $799,518 Common stock 799,010 554,880 Retained earnings 254,710 261,602 Total common equity $1,053,720 $816,482 Total liabilities and equity $2,015,000 $1,616,000 Corrigan corporation: Income statement (in thousands) 2019 2018 Sales $6,500,000 $6,335,000 COGS excluding depreciation 4,680,000 2,980,000 EBITDA $1,820,000 $3,355,000 Depreciation 159,000 154,500 EBIT $1,661,000 $3,200,500 Interest expense 67,000 43,000 EBT $1,594,000 $3,157,500 Taxes (40%) 637,600 1,263,000 Net income $956,400 $1,894,500 Using the Corrigan corporations financial statements, compute the Net investment in operating capital for 2019. Group of answer choices $500,000 $ 391,708 $ 47,578 $300,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started