Net operating working capital is the difference between operational current assets and operational current liabilities. Net working capital that is simply calculated by subtracting current liabilities from current assets is different from net operating working capital as NOWC does not include current financial investments.
Operating current assets include cash, accounts receivables, and inventories other than short term investments. These assets are totally related to the core activity of the business and are convertible into cash within 12 months period. On the other hand, the operating current liabilities include accrued expenses and accounts payables that are expected to be settled in less than a year.
Net Operating Working Capital = Operating Current assets – operating current liabilities
Jenny Cochran, a graduate of The University of Tennessee with
Define each of the following terms: a. Project cash
The 2018 income statement for Egyptian Noise Blasters shows that depreciation expense
Using Rhodes Corporation’s financial statements (shown below), answer the following
Explain how net operating working capital is recovered at the end of
The 2018 income statement for Duffy’s Pest Control shows that depreciation expense
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Vinny’s Overhead Construction had free cash flow during 2018 of $25
Jenny Cochran, a graduate of the University of Tennessee with 4
Using Rhodes Corporation’s financial statements (shown after Part f), answer
