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

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

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 49E
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Consider the following table, which is extracted from the company balance sheet and
answer the questions.

Items

Amount in OMR

Items

Amount in OMR

Prepayments

4,500

Cash

6,000

Account receivable

6,000

Marketable securities

3,000

Accruals

4,000

Accounts payable

5,000

Notes payable

3,500

Inventory

6,000

Short-term debt

6,000

Tax payable

2,000

 

  1. Calculate the networking capital (NWC) for the company.
    B. How working capital is different from capital investments? Explain
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