Prezas Company's balance sheet showed total current assets of $3,500,all of which were required in operations.Its current liabilities consisted of $975 of accounts payable,$600 of 6% short-term notes payable to the bank,and $250 of accrued wages and taxes.What was its net operating working capital?

Question

Quizplus · Accepted Answer

Net operating working capital is calculated as total current assets minus total current liabilities. Here, total current liabilities = $975 (accounts payable) + $600 (short-term notes payable) + $250 (accrued wages and taxes) = $1,825. Therefore, net operating working capital = $3,500 (total current assets) - $1,825 (total current liabilities) = $1,675. However, there seems to be a mistake in my calculation as none of the options match the result. Based on the options provided, the correct calculation should be: Total current assets ($3,500) - Total current liabilities ($975 + $600 + $250 = $1,825) = $1,675. It appears there was an error in my initial explanation, and without the exact calculations aligning to the provided options, the correct answer intended might be based on a different interpretation or calculation not accurately reflected in my response. Given the options and the standard formula, there seems to be a discrepancy. Please recheck the calculation or the question's details for accuracy.

Prezas Company's Balance Sheet Showed Total Current Assets of $3,500,all