Given the following statement of financial position data, calculate net working capital: cash = $110, accounts receivable = $410, inventory = $350, net fixed assets = $1,000, accounts payable = $60, short-term debt = $375, and long-term debt = $510.

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Here, current assets = cash + accounts receivable + inventory = $110 + $410 + $350 = $870. Current liabilities = accounts payable + short-term debt = $60 + $375 = $435. Therefore, net working capital = $870 - $435 = $435.

Given the Following Statement of Financial Position Data, Calculate Net