Question

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

Answer 1

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

where,

For 2008, Luther Corporation

Current Assets = $171.0 million

Current Liabilities = $144.0 million

therefore,

Net Working Capital = $171.0 million - $144.0 million

                                  = 27.0 million

Conclusion :

Luther's net working capital in 2008 is 27.0 million