A firm has current assets of $10,000 and current liabilities of $6,000. Cash and marketable securities total $4,000, the balance in accounts receivable is $2,000, and the book value of inventory is $4,000. The firm's net working capital is:
A)$2,000.
B)$4,000.
C)$6,000.
D)$9,000.
E)None of the above

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. Here, it is $10,000 - $6,000 = $4,000.

A Firm Has Current Assets of $10,000 and Current Liabilities