Consider the following information for the question(s)below.
Hammond Motors had sales of $35 million in 2019 with a cost of goods sold of $20 million.A simplified balance sheet for Hammond appears below (amounts in $ million):
-Hammond's net working capital in 2019 is closest to:
A)$2.3 million.
B)$3.8 million.
C)$6.5 million.
D)$10.5 million.

Question

Consider the following information for the question(s)below.
Hammond Motors had sales of $35 million in 2019 with a cost of goods sold of $20 million.A simplified balance sheet for Hammond appears below (amounts in $ million): 
-Hammond's net working capital in 2019 is closest to:
A)$2.3 million. 
B)$3.8 million. 
C)$6.5 million. 
D)$10.5 million.

Quizplus · Accepted Answer

Net working capital = Current assets - Current liabilities = $10.5 million - $8.2 million = $2.3 million

Consider the Following Information for the Question(s)below