The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash. What is Rosnan's 2013 net operating working capital (NOWC)? Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.

Balance Sheets:
2013 2012
Cash and equivalents $70 $55
Accounts receivable 275 300
Inventories 375 350
Total current assets $720 $705
Net plant and equipment 2,000 1,490
Total assets $2,720 $2,195

Accounts payable $150 $85
Accruals 75 50
Notes payable 120 145
Total current liabilities $345 $280
Long-term debt 450 290
Common stock 1,225 1,225
Retained earnings 700 400
Total liabilities and equity $2,720 $2,195

Income Statements:
2013 2012
Sales $2,000 $1,500
Operating costs excluding depreciation 1,250 1,000
EBITDA $750 $500
Depreciation and amortization 100 75
EBIT $650 $425
Interest 62 45
EBT $588 $380
Taxes (40%) 235 152
Net income $353 $228

Dividends paid $53 $48
Addition to retained earnings $300 $180

Shares outstanding 100 100
Price $25.00 $22.50
WACC 10.00%