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 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Question
Poseidon, Inc., has current assets of $2,820, net fixed assets of $13,750, current liabilities of $4,525, and long-term debt of $5,130.
How much is the company's net working capital?
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Expert Solution
INTRODUCTION
Working capital is the amount of capital invested in the business fr carrying out day-to-day operations of the business.
working capital can be classified into 2 types:
(a) gross working capital: total amount invested in current assets is called gross working capital.
(b) net working capital: current assets minus current liabilities is called net working capital.
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