Allianze Ltd has the following data information as of 30 June 2022:Current assets of $ 6,970Net fixed assets of $18,700Current liabilities of $4,570Long term debts of $9,490. Required:How much is net working capital of the company? Calculate the return on assets of the company given the return on equity is 20%

Answered: Allianze Ltd has the following data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Allianze Ltd has the following data information as of 30 June 2022:

Current assets of $ 6,970
Net fixed assets of $18,700
Current liabilities of $4,570
Long term debts of $9,490.

Required:

How much is net working capital of the company?

Calculate the return on assets of the company given the return on equity is 20%

Expert Solution

Step 1: Introduction:

Working capital is a measure of a company's capacity to meet its current liabilities with its current assets. By examining this statistic, investors may assess the company's operational effectiveness, capacity to pay off debt within a year, and short-term financial stability.

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