If total assets = $550, ﬁxed assets = $375, current liabilities = $140, equity = $265, long-term debt = $145, and current assets is the only remaining item on the statement of ﬁnancial position, what is
The value of net working capital?

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Current assets can be found by subtracting fixed assets from total assets ($550 - $375 = $175). Therefore, net working capital is $175 (current assets) - $140 (current liabilities) = $35.

If Total Assets = $550, ﬁXed Assets = $375, Current