Chapter 20, Problem 1QP

a.

Summary Introduction

To calculate: The current assets of Company C.

Explanation of Solution

Determine the current assets of Company C:

Hence, the total current assets is $39.7 million.

b.

Summary Introduction

To calculate: The current liabilities of Company C.

Explanation of Solution

Determine the current liabilities of Company C:

Hence, the total current liabilities are $20.6 million.

c.

Summary Introduction

To calculate: The net working capital of Company C.

Explanation of Solution

Determine the net working capital of Company C:

$\begin{array}{c}\text{Net working capital}=\text{Current assets}-\text{Current liabilities}\\ =\$39.7\text{ million}-\$20.6\text{ million}\\ =\$19.1\text{ million}\end{array}$

Hence, the net working capital is $19.1 million.