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The financial information for Laurel Electronics referred to in problem 3.5 is all book value. Suppose marking-to-market reveals that the market value of the firms
The financial information for Laurel Electronics referred to in problem 3.5 is all book value. Suppose marking-to-market reveals that the market value of the firms inventory is 20 percent below its book value and its receivables are 25 percent below its book value. The market value of its current liabilities is identical to the book value. What is the firms net working capital using market values? What is the percentage change in net working capital?
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