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Unformatted text preview: What are operating current liabilities? How much net operating working capital and total net operating capital does Computron have? Answer: Operating current assets are the CA needed to support operations. OP CA include: cash, inventory, receivables. OP CA exclude: short-term investments, because these are not a part of operations. Operating current liabilities are the CL resulting as a normal part of operations. OP CL include: accounts payable and accruals. OP CA exclude: notes payable, because this is a source of financing, not a part of operations. NOWC = operating CA operating CL NOWC 07 = ($7,282 + $632,160 + $1,287,360) - ($324,000 + $284,960) = $1,317,842. NOWC 06 = $793,800. Total operating working capital = NOWC + net fixed assets. Operating capital in 2007 = $1,317,842 + $939,790 = $2,257,632. Operating capital in 2006 = $1,138,600....
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.
- Spring '08