Use the table for the question(s) below.
Balance Sheet
Current Assets | Current Liabilities |
Cash | 50 | Accounts payable | 42 |
Accounts receivable | 22 | Notes payable/short-term debt | 7 |
Total current assets | 89 | Total current liabilities | 49 |
Long-Term Assets | Long-Term Liabilities |
Net property, plant,
and equipment | 121 | Long-term debt | 128 |
Total long-term assets | 121 | Total long-term liabilities | 128 | |
Total Assets | 210 | Total Liabilities and | 210 |
The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be?
◦ -$3 million
◦ -$10 million
◦ $10 million
◦ $40 million