Question

Last year, J&H Corp. reported a book value of exist700 million in current assets, of which 15% is cash, 17% is short-term Investments, and the rest is accounts receivable and inventory. The company reported exist595.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable Claims last year. There were no changes in the accounts payables during the reporting period. The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of exist1, 120 million in long-term assets last year. Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true? Check all that apply. a) J&H Corp.'s total net operating capital consists of its net operating working capital and total investment in long-term assets. b) The company has no notes payable reported in its balance sheet, so all its current liabilities are its operating liabilities. c) Based on the information on industry averages, J&H Corp. would generate higher profits than the other players in the industry if all players had no debt or held no financial assets. d) The company is using -exist14.0 million in net operating working capital acquired by investor-supplied funds. e) Based on the information on industry averages, other players in the industry would generate higher profits than J&H Corp. if they had no debt and held no financial assets.

Answer 1

Complete Question

The  complete question is shown on the first uploaded image

Answer:

The  correct stalemates are

The company is using -$14 million in net operating working capital  

acquired by investor supplied funds.

Based on the information on industry averages , other players in the industry

would generate higher profits than J&H Corp , if they had no debt and  

held no financial assets

Explanation:

The  calculation is shown on the second and third uploaded image