AssetsCashReceivables (net)InventoryPP & E (net)Patents&LicensesGoodwillTotal assetsLiabilities & EquityAccounts payableShort term debtLong term debtPreferred stockCommon EquityTotal Liabilities + EquityNew Chip Corp Balance Sheet at 12/31/22($ in Millions)3145642152819402531917923128402 (Answers that are Multiples (x) or Percents (%) should be carried to 1 decimal place or 2if indicated)Question to answer in reference to the balance sheet:What is New Chip's net working capital? ($)|

(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? ($)

(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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Question

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

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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