SUMBER DAN PENGUNAAN MODAL KERJA

1. UNIVERSITAS SRIWIJAYA FAKULTAS EKONOMI SUMBER DAN PENGUNAAN MODAL KERJA 2012

2. Short-Term Finance and Planning Is an analysis of decisions that effect current assets and current liabilities 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

3. 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

4. Problem Below are the 2007 and 2008 balance for Endow, Inc. Endow, Inc Balance sheet December 31, 2007 and 2008 (In million US$) • 31/12/2007 31/12/2008 • Assets: • Cash $ 1,200 $ 1,400 • Securities $ 1,400 $ 1,000 • Receivable $ 2,400 $ 2,000 • Inventory $ 4,400 $ 5,200 • Machine $ 8,000 $ 10,000 • Accumulated depreciation ($ 800) ($ 1,200) • Building $ 8,000 $ 8,000 • Accumulated depreciation ($ 1,200) ($ 1,800) • Land $ 4,600 $ 7,400 • Total Assets$ 28,000$ 32,000

5. Problem (Con’t) Endow, Inc Balance sheet December 31, 2007 and 2008 (In million US$) • 31/12/2007 31/12/2008 • Liabilities and Equity: • -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 US$ 1,400. Arrange the sources and the uses of net working capital statement ?

6. Answer: Endow, Inc The sources and the uses of net working capital statement December 31, 2008 (In million US$) • The Sources The Uses • Profit from operation $ 3,000 Cash dividend $ 1,400 • Depreciation $ 1,000 Increasing fixed assets: • Increasing long term debt $ 3,000 Machine $ 2,000 • Land $ 2,800 • Increasing net working capital $ 800 • Total $ 7,000 Total $ 7,000

7. Answer: Endow, Inc The change of net working capital statement December 31, 2007 and 2008 (In million US$) • 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

8. Balance Sheet of MD Corporation MD Corporation Balance sheet as of December 31, 2007 amd 2008 ($ in millions) Items 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 $ 640 Retained earnings $1,320 $1,629 Total owners’ equity $1,920 $2,269 Total Assets $2,756 $3,112 Total Liabilities and Owner’s equity $2,756 $3,112

9. 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