ASSIGNMENT 04 C09E Principles of Finance Directions: Be sure to save an electron
ID: 2515972 • Letter: A
Question
ASSIGNMENT 04 C09E Principles of Finance Directions: Be sure to save an electronic copy of your answer before submitting it to Ashwort College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements. Part A Consider the information below from a firm's balance sheet for 2011 and 2012. Current Assets 2012 2011 Change Cash and Equivalents $1,561 $1,800 239 Short-Term Investments $1,052 Accounts Receivable Inventories Other Current Assets 707 601 106 Total Current Assets$8,752 S10,083 -$1,331 -$1,958 S 487 $3,010 $3,616 $3,129 $1,816 $1,543 S 273 Current Liabilities Accounts Payable S5,173$5,111 Short-Term Debt288 Other Current Liabilities$140LS1098.$ 303 Total Current Liabilities $6,862 $6,486 376 S 62 s 277 s 11 1.what is the Net Working Capital for 2012? 8752- 2.What is it for 2011? O, oY3_?9e> 3587 3. What is the Change in Net Working Capital (NWC)? 4. Assuming the Operating Cash Flows (OCF) are $7,155 and the Net Capital Spending (NCS) is $2.372, what is the Cash Flow from Assets?Explanation / Answer
3.
Change in net working capital
= Net working capital for 2012 - Net working capital for 2011
= 1890 - 3587
= - 1697
4.
Cash flows from assets
= Operating cash flow - Net capital spending - Change in net working capital
= 7155 - 2372 - (-1697)
= 6480