UNIVERSITAS SRIWIJAYA FAKULTAS EKONOMI Soe SUMBER DAN PENGUNAAN MODAL KERJA 2012Is an analysis of decisions that effect current assets and current liab and will frequently have an impact on the firm within the year. It often associated with the term Net Working Capital Net Working Capital is the difference between current assets and current liabilities. Net Working Capital = Current Assets — Current LiabilitiesThe Sources and Uses of Net Working Capital The Sources: +Decreasing Fixed Assets *Increasing long Term Debt Increasing Equity Profit From operation “Depreciation The uses: «Increasing fixed *Decreasing long term Debt *Decreasing equity *Loss From operation *Cash DividendBelow are the 2007 and 2008 balance for Endow, Inc. Endow, Inc Balance sheet December 31, 2007 and 2008 (In million USS) 31/12/2007 31/12/2008 Assets: $ 1,200 $ 1,400 $ 1,400 $ 1,000 -Receivable $ 2,400 $ 2,000 Inventory $ 4,400 $ 5,200 -Machine $8,000 $ 10,000 -Accumulated depreciation (S800) (S 1,200) -Building $8,000 $ 8,000 -Accumulated depreciation (S 1,200) (S 1,800) -Land $ 4,600 $ 7,400 Total Assets $ 28,000 $ 32,000Endow, Inc Balance sheet December 31, 2007 and 2008 (In million US$) 31/12/2007 31/12/2008 Liabilities and Equit -Account payable $ 3,000 $2,000 -Notes payable $ 2,000 $ 2,400 -Bonds (10%) $9,000 $ 12,000 -Common stock $ 10,000 $ 10,000 -Capital surplus $ 2,000 $ 2,000 -Retained earning $ 2,000 $ 3,600 Total liabilities and equity $ 28,000 $ 32,000 Net profit in 2008 is US$ 3,000 and paid for cash dividend U! and the uses of net working capital statement ? $ 1,400, Arrange the sourcesEndow, Inc The change of net working capital statement December 31, 2007 and 2008 (In million USS) 31/12/2007 | 31/12/2008 Increasing Decreasing Current assets: -Cash 1,200 $ 1,400 $ 200 “Securities 1,400 $ 1,000 $ 400 -Receivable 2,400 $ 2,000 $ 400 -Inventory 4,400 $ 5,200 $ 800 Current liabilities: -Account payable | $ 3,000 $ 2,000 $ 1,000 -Notes payable $ 2,000 $ 2,400 $ 400 Total $2,000 $1,200 Increasing NWC $ 800Endow, Inc The change of net working capital statement December 31, 2007 and 2008 (In million USS) 31/12/2007 | 31/12/2008 Increasing Decreasing Current assets: -Cash 1,200 $ 1,400 $ 200 “Securities 1,400 $ 1,000 $ 400 -Receivable 2,400 $ 2,000 $ 400 -Inventory 4,400 $ 5,200 $ 800 Current liabilities: -Account payable | $ 3,000 $ 2,000 $ 1,000 -Notes payable $ 2,000 $ 2,400 $ 400 Total $2,000 $1,200 Increasing NWC $ 800Balance Sheet of MD Corporation a Balance sheet as of December 31, 2007 amd 2008 MD Corporation ($ in millions) Ttems 2007 2008 Items 2007 | 2008 Current Asset Currrent Liabilities Cash $ 104 | $ 160 | Account payable $ 232 |$ 266 Acc receivable $ 455 | $ 688 | Notes payable $ 196 |$ 123 Inventory $ 553 | $ 555 Total current asset $1,112 }$1,403 [Total Current liabilities |$ 428 |$ 389 Fixed Assets Long term Debt $ 408 /$ 454 Net plant & equipment] $1,644 | $1,709 | Common stock and paid in surplus $ 600 |s 640 Retained earnings $1,320 | $1,629 Total owners’ equity | $1,920 |§2,269 Total Assets $2,756 $3,112 [Total Liabilities and Owners equity — $2,756 $3.12Income Statement of MD Corporation MD Corporation Income Statement December 31, 2008 ($ In Million) Net sales $ 1,509 Cost of good sold $ 750 Depreciation $ 65 Earning beforte interest and taxes $ 694 Interest paid $ 70 Taxable income $ 624 Taxes $ 212 Net income $ 412 Dividends $ 103 Additon to retained earning $ 309