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(Answered) Working capital requirement


I need this converted I have no clue how to do it see attached file and the questions answered and copied here;1. Restate the following balance sheet into managerial balance sheet format. What does working capital requirement (WCR) mean?;Balance Sheet;Fiscal Year Ended Dec 31;1999 2000;Assets;Cash and cash equivalents $ 12 $ 20;Receivables 1,525 2,690;Inventories 8,061 12,872;Prepaid expenses 200 101;Total Current Assets 9,798 15,683;Fixed Assets 6,353 9,850;Accumulated Depreciation (1,608) (2,173);Total Assets $14,543 $23,360;Liabilities & Stockholders Equity;Short Term Notes payable $ 1,000 $1,251;Accounts Payable 3,873 7,104;Accrued Liabilities 1,826 2,656;Long Term Debt due in one year 14 20;Total Current Liabilities 6,713 11,031;Long Term Debt 3,073 4,448;Total Liabilities 9,786 15,479;Stockholders Equity;Common Stock 230 260;Paid in Capital 527 750;Retained Earnings 4,000 6,871;Total Stockholders Equity 4,757 6,881;Total Liabilities & Stockholders Equity $14,543 $23,360;Income Statement;(In Millions);Year Ended;12/31/00;Sales $250,000;Cost of Sales 45,000;Selling & Administrative 8,321;Total Operating Expenses 53,321;Operating Income 196,679;Interest Costs 307;Income Before Taxes 196,372;Income Tax Expense 66,000;Net Income $ 130,372;2. Use the balance sheet and income statement provided above and calculate the following for year 2000;a) Average collection Period;b) Inventory Turnover;c) Comment on the operational efficiency of the firm.;3. Use the balance sheet provided above and calculate the following (for both years);a) Current Ratio;b) Quick Ratio;c) Comment on the liquidity of the firm.;4. Why is the acid test or quick ratio a better measure of liquidity than the current ratio?;Attachments;Assignment 3 Due date October 23.doc;ASSIGNMENT THREE oct 05 Rechtmann finance.doc;Assignment 3 Due date October 23[2].doc
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Working capital requirement

 


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