Prezas Company's balance sheet showed total current assets of $4,250,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 by subtracting current liabilities used in operations from current assets used in operations. 
Net operating working capital = Total current assets - (Accounts payable + Short-term notes payable + Accrued wages and taxes) 
Net operating working capital = 4,250 - (975 + 600 + 250) = $3,025. 
Therefore, the correct answer is option B.

Prezas Company's Balance Sheet Showed Total Current Assets of $4,250,all