Last year FIN3300F24 had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $11 million in operating current assets, $3 million in accounts payable, $2 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume FIN3300F24 has no excess cash. FIN3300F24 uses only debt and common equity to fund its operations. (In other words, FIN3300F24 has no preferred stock on its balance sheet.) FIN3300F24 had no other current liabilities. Assume FIN3300F24's only noncash item was depreciation. What was its net working capital (NWC)? Last year FIN3300F24 had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $11 million in operating current assets, $3 million in accounts payable, $2 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume FIN3300F24 has no excess cash. FIN3300F24 uses only debt and common equity to fund its operations. (In other words, FIN3300F24 has no preferred stock on its balance sheet.) FIN3300F24 had no other current liabilities. Assume FIN3300F24's only noncash item was depreciation. What was its net working capital (NWC)? $9 million $8 million $6 million $4 million
Last year FIN3300F24 had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $11 million in operating current assets, $3 million in accounts payable, $2 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume FIN3300F24 has no excess cash. FIN3300F24 uses only debt and common equity to fund its operations. (In other words, FIN3300F24 has no preferred stock on its balance sheet.) FIN3300F24 had no other current liabilities. Assume FIN3300F24's only noncash item was depreciation. What was its net working capital (NWC)?
Last year FIN3300F24 had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $11 million in operating current assets, $3 million in accounts payable, $2 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume FIN3300F24 has no excess cash. FIN3300F24 uses only debt and common equity to fund its operations. (In other words, FIN3300F24 has no preferred stock on its balance sheet.) FIN3300F24 had no other current liabilities. Assume FIN3300F24's only noncash item was depreciation. What was its net working capital (NWC)?
$9 million
$8 million
$6 million
$4 million
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