2. Consider the following table, which is extracted from the company balance sheet andanswer the questions.ItemsAmount in ItemsAmount in OMROMRCashPrepaymentsAccount receivableAccruals4,5006,0006,000Marketable securities3,0005,0006,0004,000Accounts payableNotes payable3,500InventoryShort-term debt6,000Тах рayable2,000A. Calculate the networking capital (NWC) for the company.B. How working capital is different from capital investments? Explain

2. networking capital is the difference between current assets and current liabilities. current…

2. Consider the following table, which is extracted from the company balance sheet and answer the questions. Items Amount in Items Amount in OMR |OMR Prepayments Account receivable 4,500 Cash 6,000 3,000 5,000 6,000 6,000 Marketable securities Accruals 4,000 Accounts payable Notes payable 3,500 |Inventory Short-term debt 6,000 Таx рayable 2,000 A. Calculate the networking capital (NWC) for the company. B. How working capital is different from capital investments? Explain

2. Consider the following table, which is extracted from the company balance sheet and answer the questions. Items Amount in Items Amount in OMR |OMR Prepayments Account receivable 4,500 Cash 6,000 3,000 5,000 6,000 6,000 Marketable securities Accruals 4,000 Accounts payable Notes payable 3,500 |Inventory Short-term debt 6,000 Таx рayable 2,000 A. Calculate the networking capital (NWC) for the company. B. How working capital is different from capital investments? Explain

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 13GI

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