Darden Company has cash of $28,000, accounts receivable of $38,000, inventory of $20,000, and equipment of $58,000. Assuming current liabilities of $28,000, this company's working capital is: Multiple Choice $58,000. $10,000. $88,000. $38,000.

Darden Company has cash of $28,000, accounts receivable of $38,000, inventory of $20,000, and equipment of $58,000. Assuming current liabilities of $28,000, this company's working capital is: Multiple Choice $58,000. $10,000. $88,000. $38,000.

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

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 21BEA: Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information:...

See similar textbooks

Related questions

Q: A bank offers a savings account with a 3% annual interest rate, compounded monthly. Sars wants to…

A: The objective of the question is to find out how much money Sara needs to deposit now in order to…

Q: Project K costs $14,000, its expected cash inflows are $9,000 per year for 10 years and its WACC is…

A: An investment's or project's net present value indicates whether or not it will be beneficial to the…

Q: What is the dirty price of a 9-year bond with a 3.11 percent annual coupon, and a yield to maturity…

A: The price that is computed after adding up the clean price of the bond along with the interest that…

Q: Gnomes R Us Just paid a dividend of $1.80 per share. The company has a dividend payout ratio of 65…

A: Dividend per share= $1.80Dividend payout ratio = 65%P/E ratio = 15.9 times

Q: Last year, you purchased a stock at a price of $74.00 a share. Over the course of the year, you…

Q: Maud'Dib Intergalactic has a new project available on Arrakis. The cost of the project is $38,000…

A: The net present value (NPV) approach of capital budgeting is used to determine the current value of…

Q: Suppose you are a euro-based investor who just sold Microsoft shares that you had bought six months…

A: The value of one currency stated in terms of another currency is known as an exchange rate. It shows…

Q: Light-emitting diode (LED) light bulbs have become required in recent years, but do they make…

Q: Question 3 of 34 You are working with the corporate finance team at your company to estimate how the…

A: Net income measures the total profitability of the company after debiting all the expenses whereas…

Q: A stock's returns have the following distribution: % Demand for the Company's Products Weak Below…

A: When the returns over the risk-free return are divided by the risk of the investment, it is termed…

Q: One year ago, Cristine. issued 6-year 7.5% annual coupon bonds at their face value of £1,000. Today…

A: The objective of this question is to calculate the current price of the bond issued by Cristine. The…

Q: he company alfa & omega, s.a. You want to accumulate $1,000,000 in a sinking fund at the end of 7…

A: Sinking fund is the money required in the future and deposits are made to meet the required amount…

Q: Aaron Heath is seeking part-time employment while he attends school. He is considering purchasing…

A: Net Present Value is defined as the sum of the present values of all future cash inflows less the…

Q: prefers Project L. How much value will the firm gain or lose if Project L is selected over Project…

A: Net present value is determined by deducting the initial investment from the current value of cash…

Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner…

A: Here, Cost of Asset $760,000.00Life of Asset in years3Annual Depreciation $253,333.33Borrowing…

Q: Suppose that the nominal interest rate in the euro area is 2%, and the nominal interest rate in…

A: Real Rate of Return = (1+NR)/(1+IR) -1Where NR= Nominal Interest RateIR= Inflation Rate.Real Rate of…

Q: 1 You want to start a business that you believe can produce cash flows of $44,000, $61,000, and…

A: The present value is the current value of future expected cash flows discounted at the rate of…

Q: The statement of retained earnings for Redwood Systems Ltd. shows a retained earnings balance of…

A: Retained earnings is that amount which is held by the company from profit of the company. The…

Q: A new oven will save $120 per year in electricity expense. How much can we afford to pay for this…

A: Present Value is the current price of future value which will be received in near future at some…

Q: A bond is issued with a coupon of 5% paid annually, a maturity of 31 years, and a yield to maturity…

A: A bond refers to an instrument that is used to raise debt capital for the issuing company from…

Q: If the stock price is $34.06, what required return must investors be demanding on the company's…

A: The constant growth model is a stock valuation method used in finance to determine a stock's…

Q: a. Estimate the company's total value. Note: Do not round intermediate calculations. Enter your…

A: The weighted average cost of capital measures the typical cost a business pays to finance its…

Q: Suppose that a three-year FRN pays a six-month Libor plus 4% semi-annually. Currently, the six-month…

A: LIBOR rate:The LIBOR rate, also known as the London Interbank Offered Rate, is a benchmark interest…

Q: A U.S. Treasury bill with 93 days to maturity is quoted at a discount yield of 1.65 percent. What is…

A: Bond Equivalent Yield (BEY) is a financial metric that establishes the yield on bonds with varying…

Q: The common stock and debt of Northern Sludge are valued at $56 million and $23 million, respectively…

A: Here,Value of stock is $56 millionValue of Debt is $23 millionRequired return on stock is…

Q: You would like to start saving for retirement. Assuming you are now 25 years old and you want to…

A: Accumulated investment refers to the value of a present asset at some future date affected by…

Q: What is the net present value of each alternative?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If Megan has $35,000 in student loans and wants to pay them down using the standard repayment method…

A: Standard repayment method means paying loan amount in equal payments for 10 yearsPayment per period…

Q: Use your knowledge of bond pricing to explain under what circumstances you would be willing to pay…

A: Price of bond is the present value of coupon payments plus present value of face value of bond based…

Q: Custom Cars purchased $39,000 of fixed assets two years ago that are classified as 5-year MACRS…

A: Initial price= $39000Depreciation in year 1= 20%Depreciation in year 2= 32%Selling price in 2 years…

Q: In the Merton model of corporate equity which is based on the Black Scholes formula, what is the…

A: The Merton Model is the model where the default or credit risk is assessed by evaluating the…

Q: e current stock price of Alcoco is $60, and the stock does not pay dividends. The instantaneous…

A: Call option delta shows how much will change in option prices with the change in value of assets in…

Q: Problem 12-13 Project Cash Flows (LG12-3) You are evaluating a project for The Ultimate recreational…

A: Free cash flow is the amount which is earned by the investor from the project. It is the net amount…

Q: stock is currently selling for $73. Option and NY Close RWJ Expiration Strike Price 68 68 68 68…

A: Call option :IN THE MONEY : when the security's price is above the strike price, andOUT OF THE…

Q: Determine the amount of money that must be invested now (time 0) at 5% nominal interest, compounded…

A: An effective annual rate is a financial statistic that accounts for compounding to determine the…

Q: JRN Enterprises just announced that it plans to cut its next-year dividend, D₁, from $2.25 to $1.30…

A: Price of a stock is the present value of the dividend and the growth of the dividend is based on the…

Q: Fitzgerald Corporation currently has an all-cash credit policy. It is considering making a change in…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet…

A: Cash and Marketable Securities = c = $670,000Accounts Receivable = ar = $870,000Inventory = i =…

Q: lly Thornton borrowed $145,000 at a rate of 7.25%, simple interest, with interest paid at the end of…

A: Simple interest is quite simple and there is interest on loan amount only and there is no interest…

Q: A bond with a par value of 1000 and 6% semiannual coupons is redeemable for 1100. You are given:…

A: Present value is the current value of the future cash flows discounted at the interest rate given…

Q: MM Ferguson's market value of common stock is $35.4 million, and its risk-free debt is $13.1 million…

A: WACC is also known as Weighted Average Cost of Capital. It includes the cost of debt & cost of…

Q: What is the price of a bond with a par value of $1,000 if it is quoted at 104?

A: Bonds are one kind of debt in which coupon is paid each period and par value is paid on maturity of…

Q: You have chosen biology as your college major because you would like to be a medical doctor.…

A: Expected starting salary = (P1*salary1) + (P2*salary 2)Here P1= 20%, P2 = 1-20% = 80%Expected…

Q: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…

A: The present value (PV) of a future sum of money or stream of cash flows is the current value,…

Q: You have been given a choice of paying $20,000 for a new GM car with a $3,000 cash rebate (net cost…

A: Here,Cost of Car is $20,000First Choice:Cash Rebate $3,000Net Cost of Car is $17,000Second…

Q: Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon…

A: Current price = PV(7.5%,13.7%*1000,1000)Current price= 959.37

Q: The treasurer of a large corporation wants to invest $12 million in excess short-term cash in a…

A: Information Provided:EAR = 6.28%Term of the instrument = 120 daysRequired is to find out bond…

Q: 4 ebook Print References Camera 2 costs $5,200. It will also last for eight years and have…

A: The problem case focuses on calculating the present value of cameras and identifying the best camera…

Q: a. What is project NPV? Note: Negative amount should be indicated by a minus sign. Do not round…

A: Net present value is determined by deducting the initial investment from the current value of cash…

Q: Mom's Cookies, Incorporated, is considering the purchase of a new cookie oven. The original cost of…

A: Project cash flows refer to the estimated cash inflows and outflows associated with a particular…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Analysis

VIEW

Step 2: Calculation of working capital

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information: Required: Compute the financing cash flows for the current year.
Calculate the net working capital of the company Using the following information. Cash $2,000 Account receivables $3,500 Intangible assets $9,000 Cash eQuivalent $6,000 Marketable securities $5,000 Notes payable (3%, due in 3 months) $4,000 Prepaid expenses $12,000 Current po1tion of long-te1m loans $7,000 Accrned expenses $6,770 Short term loans $4550 Answer choices: Net working capital $ 9, Net working capital $15, Net working capital $ 11, Net working capital $ 6,
Sterling had assets and liabilities as follows: Cash $25,000Accounts Receivable $40,000Inventory $62,500Building (net of accum. deprec.) $90,000Goodwill $65,000Accounts Payable $55,500Accrued Expenses $12,500Bond Payable (Due in 15 yrs) $90,000 Calculate working capital, and current and quick ratios
The financial statements of Persimmon Company include the following items: 20X9 20X8 Cash $51,500 $44,000 Short-term Investments 33,000 16,000 Net Accounts Receivable 100,000 105,000 Merchandise Inventory 165,000 148,000 Total Assets 535,000 551,000 Total Current Liabilities 275,000 294,000 Long-term Note Payable 57,000 56,000 What is working capital for 20X9? Group of answer choices A $203,000 B $90,500 C $74,500 D $41,500
Presented below is information available for Marley Company. Current Assets Cash $ 4,000 Short-term investments 55,000 Accounts receivable 51,000 Inventory 110,000 Prepaid expenses 30,000 Total current assets $250,000 Total current liabilities are $100,000. The acid-test ratio for Marley is: 2.20 to 1 2.50 to 1 1.30 to 1 1.10 to 1
Karen’s Diner has provided the following financial information: cashand marketable securities = $250,000, accounts receivable =$1,350,000, inventory = $2,770,000, accrued wages and taxes=$455,000, accounts payable = $911,000, and notes payable =$550,000. Find the net working capital (Round to the nearest dollar amount)
A company has cash, $80,000; temporary investments, $20,000; net receivables, $60,000; and inventory, $450,000. Current liabilities are $200,000. The quick or acid-test ratio is:
XYZ Company had cash of $200,000, Accounts payable of $150,000, Plant & Equipment of $350,000, Inventory of $75,000 and other assets of $90,000. XYZ's liabilities consisted of long-term debt of $350,000, non-current portion of notes payable of $65,000, Accounts Payable of $ 135,000 and Accrued Expenses of $65,000. Calculate the working capital and the current ratio based upon this information.
the total current assets of Gorgan company is equal to $540,000. This includes cash of $40,000, inventories of $250,000, and accounts receivables of $250,000. the current liabilities of the company is equal to $400,000. Calculate the companies quick ratio (round to 2 decimal places). A) 1.35 B) 1.25 C) 0.63 D) 0.73
What is: Quick Assets? Amount of Working Capital? Quick Ratio? Accounts payable $ 30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 25,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000
Holmes, Inc. expects net cash flow from operating activities to be $160,000, and the company plans purchases of equipment of $83,000 and repurchases of stock of $24,000. What is Holmes’s free cash flow? a. $53,000 b. $160,000 c. $77,000 d. $83,000
Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the data for Harding Company, what is the amount of working capital?