Uptown Men's Wear has accounts payable of $2,214,inventory of $7,950,cash of $1,263,fixed assets of $8,400,accounts receivable of $3,907,and long-term debt of $4,200.What is the value of the net working capital to total assets ratio?
A)0.31
B)0.42
C)0.47
D)0.51
E)0.56

Question

Quizplus · Accepted Answer

Net working capital to total assets = ($1,263 + $3,907 + $7,950 - $2,214)/($1,263 + $3,907 + $7,950 + $8,400) = 0.51

Uptown Men's Wear Has Accounts Payable of $2,214,inventory of $7,950,cash