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To discuss: Net working capital
Introduction:
The difference between the net current assets and net current liabilities are termed as net working capital.
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Answer to Problem 2.1C
The net working capital is $5,400.
Explanation of Solution
Given information:
Total assets are $43,200, total equity are $25,600, net fixed assets are $31,700 and long term debt are $11,500.
The formula to calculate the net working capital:
Compute the net working capital:
Hence, the net working capital is $5,400.
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Chapter 2 Solutions
ESSENTIAL OF CORP FINANCE W/CONNECT
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