How would you interpret a situation where a company has a different amount of invested capital using the “operating” approach (net fixed assets + wc) and the financing approach (equity + debt)? I am correct into thinking that part of the current non interest bearing liabilities are somehow a source of funding for the company?
Total assets less current liabilities equals debt + equity.
Wouldn’t this happen for any company with goodwill? In that case the debt and equity are funding goodwill.
do you actual numbers or is this just a hypothetical?
those are actual numbers, the company doesnt have a goodwill…
Can you provide more detail or actual numbers?
Did you calculate and add a current year profit or loss from current P/L YTD? Check this position. This appear in
equity position by end of year closing entries. Also don’t forget to calculate current CIT estimates.