3. TOP Corp. has the following balance sheet. Cash Short-term investments Accounts receivable Inventory Current assets Gross fixed assets Accumulated depres. Net fixed assets Total assets $20.00 Accounts payable 50.00 Accruals 20.00 Notes payable 60.00 Current liabilities. $150.00 Long-term debt $140.00 Common stock 40.00 Retained earnings $100.00 Total common equity $250.00 Total liab. & equity a. How much total operating capital does the firm have? Show all work. b. Briefly discuss the importance of operating income to a company. 1 I $30.00 50.00 30.00 $110.00 70.00 30.00 40.00 $70.00 $250.00
3. TOP Corp. has the following balance sheet. Cash Short-term investments Accounts receivable Inventory Current assets Gross fixed assets Accumulated depres. Net fixed assets Total assets $20.00 Accounts payable 50.00 Accruals 20.00 Notes payable 60.00 Current liabilities. $150.00 Long-term debt $140.00 Common stock 40.00 Retained earnings $100.00 Total common equity $250.00 Total liab. & equity a. How much total operating capital does the firm have? Show all work. b. Briefly discuss the importance of operating income to a company. 1 I $30.00 50.00 30.00 $110.00 70.00 30.00 40.00 $70.00 $250.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a. How much total operating capital does the firm have? Show all work.
b. Briefly discuss the importance of operating income to a company.
Transcribed Image Text:3. TOP Corp. has the following balance sheet.
Cash
Short-term investments
Accounts receivable
Inventory
Current assets
Gross fixed assets
Accumulated deprec.
Net fixed assets
Total assets
$20.00 Accounts payable
50.00 Accruals
20.00 Notes payable
60.00 Current liabilities
$150.00 Long-term debt
$140.00 Common stock
40.00 Retained earnings
$100.00 Total common equity
$250.00 Total liab. & equity
How much total operating capital does the firm have? Show all work.
b. Briefly discuss the importance of operating income to a company.
1
I
$30.00
50.00
30.00
$110.00
70.00
30.00
40.00
$70.00
$250.00
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