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
Related questions
Question
100%
How did they get 12 million from this question? Explain
Transcribed Image Text:LiaDIities ana
2019
2018
Assets
2018
Stockholders' Equity
2019
Current Assets
Current Liabilities
87.6
73.5
Cash
63.6
58.5
Accounts payable
Notes payable/
short - term debt
Accounts receivable
55.5
39.6
10.5
9.6
Current maturities of
Inventories
45.9
42.9
long-term debt
39.9
36.9
Other curent assets
6.0
3.0
Other current liabilities
6.0
12.0
Total current assets
171.0
144.0
Total current liabilities
144.0
132.0
Long- Term Assets
Long- Term Liabilities
Land
Long-term debt
Capital lease obligations
66.6
62.1
239.7
168.9
Buildings
Equipment
109.5
91.5
119.1
99.6
Total Debt
239.7
168.9
Less accumulated
depreciation
(56.1) (52.5)
Deferred taxes
22.8
22.2
Net property, plant, and
equipment
239.1
200.7
Other long - term liabilities
Goodwill
60.0
Total long - term liabilities
262.5
Other long - term assets
63.0
191.1
42.0
Total liabilities
Total long-term assets
406.5
323.1
362.1
242.7
Stockholders' Equity
126.6
63.6
Total liabilities and
Stockholders' Equity
Total Assets
533.1
386.7
533.1
386.7
What is Luther's net working capital in 2018?
OA $27 million
OB. $63.6 million
C. $12 million
OD. $39 million
Expert Solution
Step 1
Working capital is the excess of current assets over current liabilities. It indicates the liquidity levels within the company to manage their operating expenses.
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