Patriot Auto Parts just reported an EPS of $2.70 on revenues of $660 million. The company has 12 million shares outstanding. Total assets are $570 million, current liabilities equal $117 million, and long-term debt is $183 million. Net fixed assets are worth $345 million. Given this information, which one of the following statements is correct?

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Given the total assets ($570 million) and net fixed assets ($345 million), we can calculate current assets as $570 million - $345 million = $225 million. Therefore, net working capital is $225 million - $117 million = $108 million.

Patriot Auto Parts Just Reported an EPS of $2