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Problem 1: Rao Corporation has the following balance sheet. How much net operating working capital does the firm have?
Cash $ 10
Accounts payable $ 20
Short-term investments Accruals 20
Accounts receivable 50
Notes payable 50
Inventory 40
Current liabilities $ 90
Current assets $130
Long-term debt 0
Net fixed assets 100
Common equity 30
Retained earnings 50
Total assets $230
Total liab. & equity $230
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