The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?
Balance Sheet
Assets Liabilities
Current Assets Current Liabilities
Cash 54 Accounts payable 42
Accounts receivable 20 Notes payable/short-term debt 6
Inventories 16
Total current assets 90 Total current liabilities 48
Long-Term Assets Long-Term Liabilities
Net property, plant,
and equipment 120 Long-term debt 129
Total long-term assets 120 Total long-term liabilities 129
Total Liabilities 177
Stockholders' Equity 33
Total Assets 210 Total Liabilities and 210
Stockholders' Equity
A) -$12 million
B) $12 million
C) -$24 million
D) $24 million
Answer: A
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Answer the following statement true (T) or false (F)
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