What is total net operating capital? Why is it important for managers to calculate a companys capital requirements?

Suppose a firm has the following information: Sales $10 million; costs of goods sold excluding depreciation $5 million; depreciation $1 4 million; other operating expenses $2 million; interest expense $1 million. If the tax rate is 25%, what is "NOPAT," the net operating profit after taxes? ($1,200,000)

Suppose a firm has the following information: Cash $500,000; short-term investments $2 5 million; accounts receivable $1 2 million; net plant and equipment $7 8 million. How much is tied up in operating current assets? ($2,700,000)

Suppose a firm has the following information: Accounts payable $1 million; notes payable $1 1 million; short-term debt $1 4 million; accruals $500,000; and long-term bonds $3 million. What is the amount arising from operating current liabilities? ($1,500,000)

Suppose a firm has the following information: Operating current assets $2 7 million; operating current liabilities $1 5 million, long-term bonds $3 million, net plant and equipment $7 8 million; and other long-term operating assets $1 million. How much is tied up in net operating working capital (NOWC)? ($1,500,000) How much is tied up in total net operating capital? ($10,000,000) A firms total net operating capital for the previous year was $9.3 million. For the current year, its total net operating capital is $10 million and its NOPAT is $1.2 million. What is its free cash flow for the current year? ($700,000)