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Wu Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating working capital does the firm

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Wu Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating working capital does the firm have? Cash Accounts receivable Inventory Current assets Net fixed assets $ 100 700 500 $1,300 1.000 Accounts payable Accruals Notes payable Current liabilities Long-term debt Common equity Retained earnings Total liab. & equity $ 250 245 405 $ 900 610 290 500 $2,300 Total assets $2,300 a $2,200 b. 5495 c. $1,795 d. $400 e. 5805 Last year Kruse Corp had $360,000 of assets (which is equal to its total invested capital), $403,000 of sales, $31,000 of net income, and a debt-to-total- capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $239,000. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure (but with less total debt). By how much would the reduction in assets improve the ROE? Do not round your intermediate calculations. O a.7.15 p.pl b. 0.00 pp 6 11.18 p.p d. 4.36 p.pl 8.9.37p.p

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