The assets of Face&Masks associates consist entirely of current assets and net plant and equipment. The firm has total assets of P2.5 Million, and net plant equipment of P2 Million. It has notes payable of P 150,000, long-term debt of P 750,000, and total common equity of P1.5 Million. The firm does have accounts payable and accruals on its statement of financial position. The firm only finances with debt and common equity, so it has no preferred stock on its statement of financial position. What is the firm's operating working capital?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 20P
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The assets of Face&Masks associates consist entirely of current assets and net plant and equipment. The firm has total assets of P2.5 Million, and net plant equipment of P2 Million. It has notes payable of P 150,000, long-term debt of P 750,000, and total common equity of P1.5 Million. The firm does have accounts payable and accruals on its statement of financial position. The firm only finances with debt and common equity, so it has no preferred stock on its statement of financial position.

What is the firm's operating working capital?

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