EBK FUNDAMENTALS OF CORPORATE FINANCE
EBK FUNDAMENTALS OF CORPORATE FINANCE
9th Edition
ISBN: 9781260049237
Author: BREALEY
Publisher: MCGRAW HILL BOOK COMPANY
Question
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Chapter 20, Problem 1QP

a.

Summary Introduction

To calculate: The current assets of Company C.

a.

Expert Solution
Check Mark

Explanation of Solution

Determine the current assets of Company C:

EBK FUNDAMENTALS OF CORPORATE FINANCE, Chapter 20, Problem 1QP , additional homework tip  1

Hence, the total current assets is $39.7 million.

b.

Summary Introduction

To calculate: The current liabilities of Company C.

b.

Expert Solution
Check Mark

Explanation of Solution

Determine the current liabilities of Company C:

EBK FUNDAMENTALS OF CORPORATE FINANCE, Chapter 20, Problem 1QP , additional homework tip  2

Hence, the total current liabilities are $20.6 million.

c.

Summary Introduction

To calculate: The net working capital of Company C.

c.

Expert Solution
Check Mark

Explanation of Solution

Determine the net working capital of Company C:

Net working capital=Current assetsCurrent liabilities=$39.7 million$20.6 million=$19.1 million

Hence, the net working capital is $19.1 million.

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