Calculate the change in the company's net working capital between the years 20x8 and 20x9. Explain what could be due to the change in working capital for that period. Malkom Ray Corporation Balance Sheet for December 31, 20x8 and 20x920x920x8Cash and Marketable Securities$ 10,000$ 9,000Account Receivables16,00012,500Inventories45,50029,000Total Current Assets$ 71,500$ 50,500Land26,00020,000Building and Equipment100,00070,000Less accumulated depreciation(38,000)(28,000)Total Fixed Assets$ 88,000$ 62,000Total Assets$159.500$112,500Accounts Payable$ 17,000$ 6,500Accrued Expenses5,0004,000Short-term notes47,00017,000Total Current Liabilities$ 69,000$ 27,500Long-term Debt27,45028,750Common Stock31,50031,500Retained Earnings31,55024,750Total Debt and Equity$159.500$112.500 Malkom Ray Corporation Income Statement for December 31, 20x920x9Sales$160,000Cost of Goods Sold96,000Gross Profit$ 64,000Operating ExpensesFixed cash operating expenses$ 21,000Variable operating expenses16,000Depreciation10,000Total Operating Expenses$ 47,000Earnings Before Interest and Taxes$ 17,000Interest Expense6,100Earnings Before Taxes$ 10,900Income Taxes3,900Net Income (Loss)$ 7.000

The net working capital refers to the difference between the current assets and liabilities of the…

Answered: Calculate the change in the company's…

Calculate the change in the company's net working capital between the years 20x8 and 20x9. Explain what could be due to the change in working capital for that period.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 1BCRQ

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