Question

please help with the following questions. thank you so much in advance.

Remaining Time: 1 hour, 16 minutes, 19 seconds. Question Completion Status: QUESTION 7 Smith & Smith, Inc.'s assets consist only of current assets and net plant and equipment. The firm has total assets of $5 million and has $500,000 of cash, $1.5 million of Accounts Receivable, and $2 million of inventory. The long-term debt is $1.25 million, and notes payable total $500,000. Totalcommon equity is $2.5 million with the remainder of the balance sheet funding coming from accounts payable and accruals. With this information, answer the following What is the firm's not working capital? $0.75 million 51.75 million 52.75 million Can't be determined QUESTIONS Smith & Smith, Inc.'s assets consist only of current assets and net plant and equipment. The firm has total assets of $5 milion and has $500,000 of cash, $1.5 million of Accounts Receivable, and $2 million of inventory. The long term debt is $1.25 million, and notes payable total $500.000 Total common equity is $2.5 million with the remainder of the balance sheet funding coming from accounts payable and accruals. With this information, answer the following: What is the firm's net operating working capital $1.75 million $2.75 million 53.25 ml Can't be determined Chak Save and Submit to save and submit Cok Se All An to all annen HOME SPECTORS

Answer 1

Ans 7) Net Working Capital = Current Asset - Current Liabilities

= cash + account receivable + inventory - (total asset - equity - long term debt)

= $ 4 Million - $ 1.25 Million

= $2.75 Million

Ans 8) Net operating working capital = Current operating asset - current operating liabilities

= cash + account receivable + inventory - (total asset - equity - long term debt - notes payable)

= $3.25 Million

Ans 9) Total liabilities = total asset - total equity

= $2.5 Million

Ans 10 ) need more information to solve this.