Knight Insurance has shareholders' equity of $136,900. The ﬁrm owes a total of $71,400 of which 30 percent is payable within the next year. The ﬁrm has net ﬁxed assets of $152,800. What is the
Amount of the net working capital?

Question

Quizplus · Accepted Answer

Net working capital = Current assets - Current liabilitiesCurrent assets = Net fixed assets + Shareholders' equity = $152,800 + $136,900 = $289,700Current liabilities = 30% of $71,400 = $21,420Net working capital = $289,700 - $21,420 = $268,280

Knight Insurance Has Shareholders' Equity of $136,900