Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $926,000 and totalcurrent liabilities of $632,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted.Change+ $39,000AccountAccrualsMarketable securitiesInventoriesAccounts payableNotes payable- 13,000+93,000Accounts receivable+ 153,000Cash+ 15,000a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action.a. The change in net working capital is $. (Round to the nearest dollar.)

Current Assets= $926,000 Current liabilities= $632,000 Net working capital= $294,000 Increased in…

Answered: Change in net working capital…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 12P

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Problem: Recognition and Measurement in Interim Periods Athena Corp. reports profit before tax of P 1,000,000 I its 2nd quarter interim financial statements before consideration for the following: Inventory with a carrying amount of P 100,000 has a net realizable value of P 80,000. It is expected that the decline in value will reverse in the 3rd An investment property measured under the cost model has a carrying amount of P 250,000 but its recoverable amount is P 210,000. An investment in FVPL measured at acquisition cost of P 20,000 has a fair value of P 25,000 as at the end of the 2nd However, the increase in fair value is expected to be only temporary. No depreciation is recognized during the 2nd The annual depreciation under the straight-line method of items of PPEs is P 360,000. Athena Corp. has a policy of providing 12 days paid vacation leaves for its employees. The vacation leaves are vesting and accumulating. Total paid vacation leaves eligibility of employees for the full…
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1 On December 31, 2019, the statement of financial position of Twitter Corporation showed the following property and equipment after charging depreciation: Building P3,000,000 Accumulated depreciation (1,000,000) P2,000,000 Equipment 1,200,000 Accumulated depreciation (400,000) 800,000 The company has adopted the revaluation model for the valuation of property and equipment. This has resulted in the recognition in prior periods of an asset revaluation surplus for the building of P140,000. The company does not make a transfer to retained earnings in respect of realized revaluation surplus. On December 31, 2019, an independent valuer assessed the fair value of the building to be P1,600,000 and the equipment to be P900,000. The building and equipment had remaining useful lives of 25 years and 4 years, respectively, as of that date. The carrying amount of property and equipment as of December 31, 2020 is Group of…

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