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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance...

Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.

Balance Sheets
2019 2018
Assets
Cash and equivalents $90   $75  
Accounts receivable 275   300  
Inventories 375   250  
      Total current assets $740   $625  
Net plant and equipment 2,300   1,490  
Total assets $3,040   $2,115  
Liabilities and Equity
Accounts payable $150   $85  
Accruals 75   50  
Notes payable 140   65  
      Total current liabilities $365   $200  
Long-term debt 450   290  
Common stock 1,225   1,225  
Retained earnings 1,000   400  
Total liabilities and equity $3,040   $2,115  
Income Statements
2019 2018
Sales $2,285   $1,585  
Operating costs excluding depreciation 1,250   1,000  
EBITDA $1,035   $585  
Depreciation and amortization 100   75  
EBIT $935   $510  
Interest 63   46  
EBT $872   $464  
Taxes (25%) 218   116  
Net income $654   $348  
Dividends paid $54   $48  
Addition to retained earnings $600   $300  
Shares outstanding 100   100  
Price $25.00   $22.50  
WACC 10.00%     

The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.

What is Rosnan's 2019 net operating working capital (NOWC)?

$  

What is Rosnan's 2019 net working capital (NWC)?

$  

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