Use the table for the question(s)below.
-The above diagram shows a balance sheet for a certain company. If the company pays back all of its accounts payable today using cash, what will its net working capital be?
A)$48 million
B)$60 million
C)$11 million
D)$50 million

Question

Use the table for the question(s)below. 
-The above diagram shows a balance sheet for a certain company. If the company pays back all of its accounts payable today using cash, what will its net working capital be?
A)$48 million 
B)$60 million 
C)$11 million 
D)$50 million

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. If the company pays back all of its accounts payable using cash, both its current assets (cash) and current liabilities (accounts payable) will decrease by the same amount, leaving the net working capital unchanged.

Use the Table for the Question(s)below