What is the amount of total net operating capital for 2015 for Rhodes Coporation

Question

What is the amount of total net operating capital for 2015 for Rhodes Coporation?

Rhodes Corporation Income Statements 2015 2014 Sales $27,500 $25,000 Operating costs excluding depreciation $23,400 $21,250 Depreciation and amortization $950 $900 Earnings before interest and taxes $3,150 $2,850 Less interest $300 $250 Pre-tax income $2,850 $2,600 Taxes (40%) $1,140 $1,040 Net income available to common stockholders $1,710 $1,560 Common dividends $550 $500 Rhodes Corporation Balance Sheets 2015 2014 Assets 2015 2014 Cash $1,375 $1,250 Short-term investments $275 $250 Accounts receivable $6,875 $6,250 Inventories $4,125 $3,750 Total current assets $12,650 $11,500 Net plant and equipment $9,625 $8,750 Total assets $22,275 $20,250 Liabilities and Equity Accounts payable $2,750 $2,500 Accruals $1,375 $1,250 Notes payable $960 $500 Total current liabilities $5,085 $4,250 Long-term debt $2,750 $2,500 Total liabilities $7,835 $6,750 Common stock $10,780 $11,000 Retained earnings 3,660 $2,500 Total common equity $14,440 $13,500 Total liabilities and equity $22,275 $20,250

Explanation / Answer

Total Net Operating Capital = Net Operating Working Capital + Non-current Operating Assets

Net Operating Working Capital = Operating Current Assets Operating Current Liabilities

Particulars Amount A. Total Current Assets (Operating Current Assets) 12650 B. Total Current Liabilities (Operating Current Liability) 5085 C. Net Operating Working Capital ( A - B) 7565 Non Current Operating Assets D. Net Plant and Equipment 9625 Total Net Operating Capital (C + D) 17190

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