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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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4 0
3 years ago
Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job order cost accounting system
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Answer:

Phillips Corporation

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b = 36,660 beginning balance WIP

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d = 6,825 Overhead applied

e = 13,500 Ending balance WIP

f = 5,500 beginning balance Finished Goods

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h = 4,300 ending balance Finished Goods

i = 9,100 wages assigned

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k = 3,125 indirect labor

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Explanation:

a) Data and Analysis:

1. Jobs in process:

Job No. 154 and Job No. 155

Combined direct materials costs    $9,950

Combined direct labor costs            15,200

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Total work in process, beginning $36,550

2. Jobs started in December:

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Direct labor                                             5,200

Overhead applied (75%)                        3,900

Total work in process                        $13,500

Beginning work in process = $36,550

Ending work in process = $13,500

Beginning Finished Goods Inventory: Job 153 $5,500

Ending Finished Goods Inventory: Job 157 $4,300

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Dec. 1 Beginning balance  9,050 (a)  

Dec. 31 Requisitions                      18,950

Dec. 31 Purchases           18,025

Dec. 31 Ending balance                  8,125

Total                                27,075  27,075

a = $9,050 (27,075 - $18,025)

Work in Process Inventory

Dec. 1 Beginning balance $36,550  b.

Dec. 31 Jobs completed               54,625 (g)

Dec. 31 Direct materials     15,650  c.

Dec. 31 Direct labor              9,100

Dec. 31 Overhead                6,825  d.

Dec. 31 Ending balance                13,500 e.

Finished Goods Inventory

Dec. 1 Beginning balance        5,500 f

Dec. 31 Cost of goods sold            55,825 (m)

Dec. 31 Completed jobs    54,625 g.

g. Dec. 31 Ending balance                  4,300 h

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Dec. 31 Factory wages         12,225

Dec. 31 Wages assigned                    9,100

Dec. 31 Overhead                               3,125

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Dec. 31 Indirect materials 3,300

Dec. 31 Overhead applied                 6,825  d.

Dec. 31 Indirect labor        3,125  k.

Dec. 31 Other overhead   1,545

Dec. 31 Underapplied overhead        1,145

7 0
2 years ago
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