Last year Rattner Robotics had $7 million in operating income (EBIT). Its depreciation expense was $1 million, its inter
Posted: Thu May 19, 2022 1:40 pm
Last year Rattner Robotics had $7 million in operating income
(EBIT).
Its depreciation expense was $1 million, its interest expense was
$1 million, and its corporate tax rate was 35%.
At year-end, it had $14 million in operating current assets, $3
million in accounts payable,
$1 million in accruals, $4 million in notes payable, and $15
million in net plant and equipment.
Assume Rattner has no excess cash. Rattner uses only debt and
common equity to fund its operations. In other words, Rattner has
no preferred stock on its balance sheet. Rattner had no other
current liabilities. Assume that Rattner’s only noncash item was
depreciation.
How much was the net working capital of Rattner
Robotics, in millions of USD?
Enter your answer in the following format: 1.23
Hint: Answer is between 5.34 and 6.72
(EBIT).
Its depreciation expense was $1 million, its interest expense was
$1 million, and its corporate tax rate was 35%.
At year-end, it had $14 million in operating current assets, $3
million in accounts payable,
$1 million in accruals, $4 million in notes payable, and $15
million in net plant and equipment.
Assume Rattner has no excess cash. Rattner uses only debt and
common equity to fund its operations. In other words, Rattner has
no preferred stock on its balance sheet. Rattner had no other
current liabilities. Assume that Rattner’s only noncash item was
depreciation.
How much was the net working capital of Rattner
Robotics, in millions of USD?
Enter your answer in the following format: 1.23
Hint: Answer is between 5.34 and 6.72