4. Technology 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? Also, how important is net operation working capital to a company? Cash Accounts receivable Inventory Current assets Net fixed assets Total assets $ 100 650 550 $1,300 $1,000 $2,300 Accounts payable Accruals Notes payable Current liabilities Long-term debt Common equity Retained earnings Total liab. & equity $ 200 110 590 $ 900 600 300 500 $2,300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
4. Technology 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? Also, how important is net
operation working capital to a company?
Cash
Accounts receivable
Inventory
Current assets
Net fixed assets
Total assets
$ 100
650
550
Accounts payable
Accruals
Notes payable
Current liabilities
Long-term debt
Common equity
Retained earnings
$2,300 Total liab. & equity
$ 1,300
$1,000
$ 200
110
590
$ 900
600
300
500
$2,300
Transcribed Image Text:4. Technology 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? Also, how important is net operation working capital to a company? Cash Accounts receivable Inventory Current assets Net fixed assets Total assets $ 100 650 550 Accounts payable Accruals Notes payable Current liabilities Long-term debt Common equity Retained earnings $2,300 Total liab. & equity $ 1,300 $1,000 $ 200 110 590 $ 900 600 300 500 $2,300
Expert Solution
Step 1: Introduction

Working capital is the difference between a company's current assets and its current liabilities. It represents the amount of cash and other resources a company has available to fund its day-to-day operations. Working capital is an important measure of a company's short-term financial health and its ability to meet its current obligations.

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education