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Semenov [28]
3 years ago
10

Wu Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating workin

g capital does the firm have? Cash $ 100 Accounts payable $ 200 Accounts receivable 650 Accruals 110 Inventory 550 Notes payable 590 Current assets $ 1,300 Current liabilities $ 900 Net fixed assets $ 1,000 Long-term debt 600 Common equity 300 Retained earnings 500 Total assets $ 2,300 Total liab. & equity $ 2,300 a. $782 b. $1,168 c. $911 d. $1,010 e. $990
Business
2 answers:
Alex3 years ago
8 0

Answer:

It is e $990

Explanation:

Notice it is asking for net operating working capital, not just working capital.

Cash + Account Receivable  + inventory - accurals expenses - Account payable = net operating working capital

100 + 650+ 550         -    110      -   200                  =

       1300                      -             310                          =   990

While working capital is current assets - current liabilities

ss7ja [257]3 years ago
6 0

The networking capital of the Wu Systems company is e) $ 990

<h2>Further explanation </h2>

Working capital is cash and assets that are easily cashed to fund the daily operations of the company. With working capital information, you can manage your business well and make the right investment decisions. By calculating working capital, you can also determine whether a company can pay its short-term obligations and in what period. Companies that lack or have no working capital will have problems later on. The working capital calculation is very useful to assess whether business activities are efficient enough in utilizing company resources. The formula for calculating working capital is:

Working capital = current assets - current debt.

Current asset

Current assets are company assets that can be converted into cash within one year. These assets consist of cash and other short-term accounts. Accounts included in current assets include trade receivables, prepaid expenses, and inventory.

This information is usually presented in the company's balance sheet with the description "current assets".

If the balance sheet does not include the number of current assets, read line by line. Add all the accounts by the definition of current assets to find out the numbers. You can add up accounts "accounts receivable", "inventory", "cash" and other accounts that are included in the cash category.

Debt smoothly

Current liabilities are liabilities that will mature in one year. Accounts included in current debt include trade debt, accrued debt, and notes payable.

The balance sheet should present the current debt amount. If you don't have it, you can add up the current debt accounts in the balance sheet, for example, "trade debt", "tax debt", "short-term debt" and "accrual".

Calculate the working capital of Wu System company

Current assets consist of:

Cash = $ 100

Receivables = $ 650

Inventory = $ 550

Current liabilities consist of:

Account debt = $ 200

Accruals = $ 110

Calculation

Working capital = current assets - current debt.

Working capital = ($ 100 + $ 650 + $ 550) - ($ 200 + $ 110)

Working capital = $ 990 (e)

Learn more

Calculation of working capital brainly.com/question/10940298, brainly.com/question/13745691

Details

Class: College

Subject: Bussines

Keyword: Calculation of working capital.

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irina [24]

Answer:

Benefit domestic producers of the protected good and harm domestic consumers of the protected good.

Explanation:

Trade policies tariffs and quotas benefit domestic producers of the protected good and harm domestic consumers of the protected good as they're made to pay for the consumption of imported products. Hence, under free trade there are more societal benefits due to the specialization of domestic goods.

Tariffs can reduce both the volume of exports and imports in a country.

In order to generate revenues, domestic government make use of tariffs while quotas do not generate any revenue for them.

5 0
3 years ago
Which of these describes the costs and benefits of getting a mortgage?
lianna [129]

Answer:

B

Explanation:

Mortgages prevent government regulation of property but involve higher taxes

6 0
2 years ago
A case comes before a Wisconsin state trial court on the subject of free speech on the Internet. It is a case of first impressio
sp2606 [1]

Answer:

The correct answer would be option B, Judge's own personal feelings about the internet.

Explanation:

When a case comes to a court, it is the responsibility of a judge to see every aspect of the case and analyze it on the basis of given evidence or set rules or standards, or in the light of decisions made on the same case by other courts. But in this question, it is said that the case which was brought to the court was the first in its kind, it means no such type of case has been ever submitted in any court before. The freedom of speech on internet is a sensitive issue. So all aspects should be kept in mind while proceeding the case, and it would not be considered proper for the judge to bring his person feelings about the internet into the case. His personal feelings should be set aside and the case should be solved on the basis of evidences and solid views.

3 0
3 years ago
A bond with par value of $1,000 has an annual coupon rate of 4.8% and currently sells for $970. What is the bond’s current yield
podryga [215]

Answer:

The Bond's Current yield = 4.95%

Explanation:

Annual coupon = Value of Bond * Annual Coupon rate

Annual coupon =  $1000 * 4.8%

Annual coupon =$48

The Bond Current yield =Annual coupon / Current price

The Bond Current yield =  $48 / $970

The Bond Current yield = 0.049485

The Bond Current yield = 4.9485

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8 0
3 years ago
A tree is constructed to value an option on an index which is currently worth 100 and has a volatility of 25%. The index provide
ZanzabumX [31]

Answer:

A. The parameters p and u are the same for both trees

Explanation:

Calculation of parameters of u(upper limit) and p(lower limit) for both index and stock:

1) INDEX

Current Value: 100

Volatality : 25%

Value can increase upto 100+25% = 125

Value can decrease to 100-25% = 75

U = Value after increase/current value = 125/100 = 1.25

P = Value after decrease/ current value = 75/100 = 0.75

2) STOCK

Current Value: 100

Volatality : 25%

Value can increase upto 100+25% = 125

Value can decrease to 100-25% = 75

U = Value after increase/current value = 125/100 = 1.25

P = Value after decrease/ current value = 75/100 = 0.75

---> The parameters U and P for both index and stock are same. This is because both the index and stock has  same value and same volality rate. Therefore, stock move according to the index.

if index changes by  certain percentage the stock also changes. Here in this case, volatality rate is same for both index  and stock. Hence Parameters U and P are same for Index and Stock.

4 0
3 years ago
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