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

Question

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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

Want to see more full solutions like this?

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.