Net working capital Introduction: The difference between the net current assets and net current liabilities are termed as net working capital.

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Answer 1

Question

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

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Answer 2

Question

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

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Answer 3

Question

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

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Answer 4

Question

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

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Answer 5

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

Answer 6

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

Answer 7

Chapter 2, Problem 2.1C

Summary Introduction

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.

Answer 8

Expert Solution & Answer

Answer to Problem 2.1C

The net working capital is $5,400.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Given information:

Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.

The formula to calculate the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )

Compute the net working capital:

Net working capital=Current assets−Current liabilities=((Total assets−Net fixed assets)−(Total liabilities−Total equity−Long term debt) )=($43,200−$31,700−($43,200−$25,600−$11,500))=$5,400

Hence, the net working capital is $5,400.

Answer 12

Ch. 2.1 - Prob. 2.1ACQ Ch. 2.1 - Prob. 2.1BCQ Ch. 2.1 - What do we mean by financial leverage?Ch. 2.1 - Explain the difference between accounting value...Ch. 2.2 - What is the income statement equation?Ch. 2.2 - What are the three things to keep in mind when...Ch. 2.2 - Why is accounting income not the same as cash...Ch. 2.3 - What is the difference between a marginal and an...Ch. 2.3 - Do the wealthiest corporations receive a tax break...Ch. 2.4 - Prob. 2.4ACQ

Net working capital Introduction: The difference between the net current assets and net current liabilities are termed as net working capital.

To discuss: Net working capital Introduction: The difference between the net current assets and net current liabilities are termed as net working capital.

Answer to Problem 2.1C

Explanation of Solution

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Chapter 2 Solutions

To discuss: Net working capital

Introduction:

The difference between the net current assets and net current liabilities are termed as net working capital.