You are analyzing the balance sheet for Bed, Bath and Beyond, a retail firm that sells home furnishings, from February 26, 1995 (in millions).
|
Assets |
Liabilities |
||
|
Cash |
$6.50 |
Accounts Payable |
$27.50 |
|
Receivables |
$0.00 |
Other Current Liabilities |
$18.60 |
|
Inventory |
$108.40 |
||
|
Current Assets |
$118.00 |
Current Liabilities |
$46.10 |
|
Fixed Assets |
$53.80 |
Long Term Debt |
$16.80 |
|
Total Assets |
$171.80 |
Equity |
$108.90 |
|
Total Liabilities |
$171.80 |
||
The firm had revenues of $440.3 million in 1994 and cost of goods sold of $249.2 million.
a. Estimate the net working capital
b. Estimate the non-cash working capital.
c. Estimate non-cash working capital as a percent of revenues. If you were asked to estimate the non-cash working capital needs for a new store for Bed, Bath and Beyond, would you use this ratio? Why or why not?