Answer:
$5,475,000
Explanation:
The computation of the total investor provided operating capital is shown below:
Total investor provided operating capital = Long term Debt & Equity + short term note payable
where,
Long term debt & equity = Total assets - current liabilities
where,
Total assets = Current assets + net fixed assets
= $1,875,000 + $4,225,000
= $6,100,000
And, the current liabilities = Account payable + short term note payable + accrued wages and taxes
= $475,000 + $375,000 + $150,000
= $1,000,000
So, the long term debt & equity is
= $6,100,000 - $1,000,000
= $5,100,000
Now the total investor-provided operating capital is
= $5,100,000 + $375,000
= $5,475,000
We simply applied the above formula
