If total assets are $100,000, fixed assets are $30,000, current liabilities are $20,000, then net working capital is:

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. 
Total current assets = Total assets - Fixed assets = $100,000 - $30,000 = $70,000
Net working capital = Current assets - Current liabilities = $70,000 - $20,000 = $50,000. Option C is the correct answer.

If Total Assets Are $100,000, Fixed Assets Are $30,000, Current