why the hell do they exclude cash in the calculation of WC in Problem #1
But include cash in working capital in #13 ( i mean, why the hell would they trick us like that)
P#13:exhibit 13: says : current assets (includes $5 cash in 2007 and 2008)
in P#1 they give you the balance sheet and do not include the changes in cash.
**** I know in the real world, excess cash is excluded from WC***
how do you determine if you should include or exclude cash? this is so dumb is they do this on exam day!
Excess cash is backed out of EV…i know some cash must be used to workin cap in the real world.
thoughts?
i got teh wrong answer in P#13 for excluding $10 of cash!