Joie's Fashions has current liabilities of $45,600 and accounts receivable of $59,700.The firm has total assets of $275,000 and net fixed assets of $205,500.The owners' equity has a book value of $107,500.What is the amount of the net working capital?

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Current assets include accounts receivable, so net working capital = $59,700 (accounts receivable) - $45,600 (current liabilities) = $14,100. However, the correct answer should be $23,900, indicating there might be additional current assets not mentioned.

Joie's Fashions Has Current Liabilities of $45,600 and Accounts Receivable