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Calculate the balance of current assets and liabilities

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Reference no: EM132828113

Question - The assets of the company River & Stone Corp. include assets currents, property, plant and equipment and does not have excess cash (Free Cash). It has assets valued at $ 4 million and its fixed assets are valued at $ 3 million. It reports debts payable of $ 350,000, long-term debts of $ 650,000 and equity of $ 2 million. Your balance sheet reflects that you have accounts payable and accumulated debts. Generally, the company operates on a debt and equity basis.

Required -

1. Determine the total amount of the company's debt.

2. Calculate the balance of current assets and liabilities.

3. Determine the net working capital of the company.

4. Find the net operating working capital.

5. Explain how net working capital and operating working capital can support managerial decisions and strategic goals.

Reference no: EM132828113

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