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A Firm Has Net Working Capital of $400, Net Fixed

question 32

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A firm has net working capital of $400, net fixed assets of $2,400, sales of $6,000, and current liabilities of $800.How many dollars worth of sales are generated from every $1 in total assets?

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Definitions:

Future Net

The projected net value or income of an investment or business activity after accounting for all anticipated costs and revenues.

Present Values

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

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