Renfro Industries balance sheet for December 31, 20x3 is as follows: Assets ($00
ID: 2665694 • Letter: R
Question
Renfro Industries balance sheet for December 31, 20x3 is as follows:Assets ($000) Liabilities and Equity ($000)
Cash $ 8,000 Accounts Payable $ 36,000
Marketable Securities 4,000 Notes Payable 12,000
Accounts Receivable 60,000 Other Current Liabilities 32,000
Inventories 100,000 Long-term debt 80,000
Plant & Equip. 220,000 Preferred Stock 48,000
Less: Deprec. 64,000 Common Stock 20,000
Net Plant & Equip. 156,000 Paid-in Surplus 40,000
Retained Earnings 60,000
Total Assets $328,000 Total Claims $328,000
What is Renfro's net working capital at the end of 20x3?
a.$8 million
b.$36 million
c.$92 million
d.$172 million
Explanation / Answer
c. $92 million Current Assets: ($000) ($000) Cash 8000 Marketable Securities 4000 Accounts Receivable 60000 Inventories 100000 Total Current Assets - (A) 172000 Current liabilities: Accounts payble 36000 Notes payble 12000 Other Current liabilities 32000 Total Current Liabilities - (B) 80000 Net Working Capital - (A- B) 92000 Net Working Capital = Current Assets - Current Liabilities = 172 Millions - 80 Millions = $92 Millions Current Assets: ($000) ($000) Cash 8000 Marketable Securities 4000 Accounts Receivable 60000 Inventories 100000 Total Current Assets - (A) 172000 Current liabilities: Accounts payble 36000 Notes payble 12000 Other Current liabilities 32000 Total Current Liabilities - (B) 80000 Net Working Capital - (A- B) 92000 Net Working Capital = Current Assets - Current Liabilities = 172 Millions - 80 Millions = $92 MillionsThank you.... Current Assets: ($000) ($000) Cash 8000 Marketable Securities 4000 Accounts Receivable 60000 Inventories 100000 Total Current Assets - (A) 172000 Current liabilities: Accounts payble 36000 Notes payble 12000 Other Current liabilities 32000 Total Current Liabilities - (B) 80000 Net Working Capital - (A- B) 92000 Net Working Capital = Current Assets - Current Liabilities = 172 Millions - 80 Millions = $92 Millions