A firm has $200,000 in current assets, $400,000 in long-term assets, $80,000 in current liabilities, and $200,000 in long-term liabilities. What is its net working capital?

Name: A firm has $200,000 in current assets, $400,000 in long-term assets, $80,000 in current liabilities, and $200,000 in long-term liabilities. What is its net working capital?
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Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Therefore, net working capital is $200,000 - $80,000 = $120,000.

A Firm Has $200,000 in Current Assets, $400,000 in Long-Term