JJ Enterprises has inventory of $11,600, fixed assets of $22,400, total liabilities of $12,900, cash of $1,900, accounts receivable of $8,700, and long-term debt of $6,500. What is the net working capital?
A) $44,600
B) $15,700
C) $12,600
D) $15,800
E) $9,300

Question

Quizplus · Accepted Answer

Net working capital = current assets - current liabilities
Current assets = cash + accounts receivable = 1900 + 8700 = $10,600
Current liabilities = total liabilities - long-term debt = 12900 - 6500 = $6,400
Net working capital = 10600 - 6400 = $4,200
Therefore, the correct answer is (D) $15,800.

JJ Enterprises Has Inventory of $11,600, Fixed Assets of $22,400