Consider the following table, which is extracted from the company balance sheet and answer the questions. Items Amount in OMR Items Amount in OMR Prepayments 4,500 Cash 6,000 Account receivable 6,000 Marketable securities 3,000 Accruals 4,000 Accounts payable 5,000 Notes payable 3,500 Inventory 6,000 Short-term debt 6,000 Tax payable 2,000 Calculate the networking capital (NWC) for the company. B. How working capital is different from capital investments? Explain
Consider the following table, which is extracted from the company balance sheet and answer the questions. Items Amount in OMR Items Amount in OMR Prepayments 4,500 Cash 6,000 Account receivable 6,000 Marketable securities 3,000 Accruals 4,000 Accounts payable 5,000 Notes payable 3,500 Inventory 6,000 Short-term debt 6,000 Tax payable 2,000 Calculate the networking capital (NWC) for the company. B. How working capital is different from capital investments? Explain
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
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Consider the following table, which is extracted from the company balance sheet and
answer the questions.
Items |
Amount in OMR |
Items |
Amount in OMR |
Prepayments |
4,500 |
Cash |
6,000 |
Account receivable |
6,000 |
Marketable securities |
3,000 |
Accruals |
4,000 |
Accounts payable |
5,000 |
Notes payable |
3,500 |
Inventory |
6,000 |
Short-term debt |
6,000 |
Tax payable |
2,000 |
- Calculate the networking capital (NWC) for the company.
B. How working capital is different from capital investments? Explain
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