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Hildebrand Corp Net Operating Working Capital

Hildebrand Corp had the following current asset and current liability account balances for 2007 through 2010.

Given:
In Millions of $ 2010 2009 2008 2007
Cash & Equivalents $807,926 $560,960 $617,866 $658,255
Short Term Investments 178,994 197,408 182,442 614,513
Cash and Short Term Investments 986,920 758,368 800,308 1,272,768
Accounts Receivable 2,028,060 2,365,823 2,341,609 2,302,447
Inventories 1,456,271 1,441,024 1,450,258 1,262,308
Total Current Assets 4,471,251 4,565,215 4,592,175 4,837,523

Accounts Payable 1,138,770 1,601,413 1,584,959 1,416,367
Accrued Expenses 878,454 901,546 902,164 863,683
Notes Payable/Short Term Debt 1,038,633 789,285 979,675 821,126
Current Port. of LT Debt 531,635 386,879 303,214 248,028
Total Current Liabilities $3,587,492 $3,679,123 $3,770,012 $3,349,204

Answer the following questions:

a) Compute Hildebrand's operating net working capital for 2007-2010?

b) What is the annual change in operating net working capital for the sample period?

c) Analyze the firm's need for additional capital to support its need for operating working capital.

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Solution Summary

Calculations of net operating working capital based on given data

$2.19