A firm's balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars. Dec. 31, 2011 Dec. 31, 2012 Accounts receivable Inventories 36.7 33.4 30.7 26.4 Accounts payable 26.7 13.4 a. Calculate the net working capital in 2011. (Enter your answer in millions rounded to 1 decimal place.) Net working capital %$4 million b. Calculate the net working capital in 2012. (Enter your answer in millions rounded to 1
A firm's balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars. Dec. 31, 2011 Dec. 31, 2012 Accounts receivable Inventories 36.7 33.4 30.7 26.4 Accounts payable 26.7 13.4 a. Calculate the net working capital in 2011. (Enter your answer in millions rounded to 1 decimal place.) Net working capital %$4 million b. Calculate the net working capital in 2012. (Enter your answer in millions rounded to 1
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A firm's balance sheets for year-end 2011 and 2012 contain the following data. All items
are in millions of dollars.
Dec. 31, 2011
Dec. 31, 2012
Accounts receivable
36.7
33.4
Inventories
30.7
26.4
Accounts payable
26.7
13.4
a. Calculate the net working capital in 2011. (Enter your answer in millions rounded to 1
decimal place.)
Net working capital
million
b. Calculate the net working capital in 2012. (Enter your answer in millions rounded to 1
decimal place.)
Net working capital
%24
million
c. What happened to investment in net working capital during 2012? (Input the amount
as a positive value. Enter your answer in millions rounded to 1decimal place.)
Net working capital has (Click to select)
v by $
million.
%24
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