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geniusboy [140]
3 years ago
5

Luther Corporation Consolidated Balance Sheet December 31, 2009 and 2008 (in $ millions) Assets 2009 2008 Liabilities and Stockh

olders' Equity 2009 2008 Current Assets Current Liabilities Cash 63.6 58.5 Accounts payable 87.6 73.5 Accounts receivable 55.5 39.6 Notes payable/ short-term debt 10.5 9.6 Inventories 45.9 42.9 Current maturities of long-term debt 39.9 36.9 Other current assets 6.0 3.0 Other current liabilities 6.0 12.0 Total current assets 171.0 144.0 Total current liabilities 144.0 132.0 Long-Term Assets Long-Term Liabilities Land 66.6 62.1 Long-term debt 239.7 168.9 Buildings 109.5 91.5 Capital lease obligations --- --- Equipment 119.1 99.6 Total Debt 239.7 168.9 Less accumulated depreciation (56.1) (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 239.1 200.7 Other long-term liabilities --- --- Goodwill 60.0 -- Total long-term liabilities 262.5 191.1 Other long-term assets 63.0 42.0 Total liabilities 406.5 323.1 Total long-term assets 362.1 242.7 Stockholders' Equity 126.6 63.6 Total Assets 533.1 386.7 Total liabilities and Stockholders' Equity 533.1 386.7 What is Luther's net working capital in 2008
Business
1 answer:
joja [24]3 years ago
4 0

Answer:

27.0 million

Explanation:

Net Working Capital is the difference between the company`s short term assets or current assets and its short term obligations or current liabilities

              Net Working Capital = Current Assets - Current Liabilities

<em>where,</em>

For 2008, Luther Corporation

Current Assets = $171.0 million

Current Liabilities = $144.0 million

<em>therefore</em>,

Net Working Capital = $171.0 million - $144.0 million

                                  = 27.0 million

Conclusion :

Luther's net working capital in 2008 is 27.0 million

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c.

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Cash                                                         34700 Dr

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First we need to determine the net book value of the equipment at the time of sale. The net book value is the net value after deducting accumulated depreciation from the cost of the asset.

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a.

Gain on disposal = 52700 - 39800   = $12900

b.

No gain or no loss as Net Book Value of the asset equals the amount of cash it is sold for.

c.

Loss on disposal = 34700 - 39800   =  - $5100

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