Question

Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true? Check all that apply. The company is using -$84.0 million in net operating working capital acquired by investor-supplied funds. The firm uses $1,036.0 million of total net operating capital to run the business. J&H Corp.’s NOPAT is $182.4 million, which is lower than the industry average of $228.0 million. The company has $511.0 million in operating assets and $595.0 million in operating liabilities. J&H Corp. has $98.4 million of net operating capital.

Answer 1

Answer:

Statements that are:

The company is using -$84.0 million in net operating working capital acquired by investor-supplied funds.

The company has $511.0 million in operating assets and $595.0 million in operating liabilities.

Explanation:

The above statements are true and agree with each other.  The other statements do not agree with the above statements nor with one another.  The name of the company where Jeffrey works is not indicated in the case.  There is no evidence to support that the company uses $1,036.0 million of total net operating capital to run the business.