Hi,
I have a question regarding working capital/net debt and restricted cash.
Say a company have 200 in debt and 100 in cash where 50 of them is restricted because they PROBABLY have to be paid to customers at a later point. Ie. these 50 also has a payable account on the balance.
My question is; 1) when calculating working capital and net debt for purchase price adjustments reasons - will only the operating cash be included in the net debt calculations? Ie. will net debt be 200-50 og 200-100?
2) And, if 25 of those payables will be classified as debt instead, would the net debt be 200-175, 225-175, 200-150 or 225-150?
3) And what happens with net working capital in question number 2? The liability side will be reduced by 25 and the asset side will remain the same?
I cant get my head around this. Thanks in advance for replies.
Enim omnis vel nemo odio animi. Minus voluptatem laboriosam voluptatem consequatur alias tempora modi. Numquam consequatur libero aliquam quia reiciendis autem. Laborum rerum corrupti sit labore.
Rerum nulla qui reprehenderit consequatur quos commodi. Velit nesciunt minus recusandae in sint corporis. Eos nulla doloribus voluptatibus illum ea dolor deserunt.
Sed debitis itaque modi quidem sint. A debitis sit excepturi voluptatem. Et quaerat quasi quo quo magnam eos. Iste dicta at eum quos.
Pariatur dignissimos dolor aut unde animi. Beatae voluptatibus quas laudantium aliquid illum expedita. Et magni laudantium et eos est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...