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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Students have asked these similar questions

An insurance company has liabilities of £7 million due in 10 years' time and £9 million due in 17 years' time. The assets of the company consist of two zero-coupon bonds, one paying £X million in 7 years' time and the other paying £Y million in 20 years' time. The current interest rate is 6% per annum effective. Find the nominal value of X (i.e. the amount, IN MILLIONS, that bond X pays in 7 year's time) such that the first two conditions for Redington's theory of immunisation are satisfied. Express your answer to THREE DECIMAL PLACES.

An individual is investing in a market where spot rates and forward rates apply. In this market, if at time t=0 he agrees to invest £5.3 for two years, he will receive £7.4 at time t=2 years. Alternatively, if at time t=0 he agrees to invest £5.3 at time t=1 for either one year or two years, he will receive £7.5 or £7.3 at times t=2 and t=3, respectively. Calculate the price per £5,000 nominal that the individual should pay for a fixed-interest bond bearing annual interest of 6.6% and is redeemable after 3 years at 110%. State your answer at 2 decimal places.

The one-year forward rates of interest, f+, are given by: . fo = 5.06%, f₁ = 6.38%, and f2 = 5.73%. Calculate, to 4 decimal places (in percentages), the three-year par yield.

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.