NNR Inc.'s balance sheet showed total current assets of $1, 875, 000 plus $4, 225, 000 of net fixed assets.All of these assets were required in operations.The firm's current liabilities consisted of $475, 000 of accounts payable, $375, 000 of 6% short-term notes payable to the bank, and $150, 000 of accrued wages and taxes.Its remaining capital consisted of long-term debt and common equity.What was NNR's total investor-provided operating capital?

Question

Quizplus · Accepted Answer

11ea1b84_8b76_4c21_a54a_d3476f76c5ee_TB3581_00 Note that the total operating capital is the amount of the capital, or assets, that are required in operations and that must be financed by investors, given that payables and accruals are generated spontaneously by operations and do not have to be financed by investors.

NNR Inc'S Balance Sheet Showed Total Current Assets of $1, 875