(Answers that are Multiples (x) or Percents (%) should be carried to 1 decimal place or 2 if indicated) Question to answer in reference to the balance sheet: What is New Chip's net working capital? ($)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assets
Cash
Receivables (net)
Inventory
PP & E (net)
Patents&Licenses
Goodwill
Total assets
Liabilities & Equity
Accounts payable
Short term debt
Long term debt
Preferred stock
Common Equity
Total Liabilities + Equity
New Chip Corp Balance Sheet at 12/31/22
($ in Millions)
31
45
64
215
28
19
402
53
19
179
23
128
402
Transcribed Image Text:Assets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402
(Answers that are Multiples (x) or Percents (%) should be carried to 1 decimal place or 2
if indicated)
Question to answer in reference to the balance sheet:
What is New Chip's net working capital? ($)
|
Transcribed Image Text:(Answers that are Multiples (x) or Percents (%) should be carried to 1 decimal place or 2 if indicated) Question to answer in reference to the balance sheet: What is New Chip's net working capital? ($) |
Expert Solution
Step 1

 

NET WORKING CAPITAL

Working Capital is the money available to meet your current short-term obligations. Net Working Capital is the Difference between Current Assets & Current Liabilities.

Net Working Capital is Computed :— 

= Total Current Assets - Total Current Liabilities

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