Bonner Collision has shareholders' equity of $141,800.The firm owes a total of $126,000 of which 60 percent is payable within the next year.The firm net fixed assets of $161,900.What is the amount of the net working capital?
A)$25,300
B)$30,300
C)$75,600
D)$86,300
E)$111,500

Question

Quizplus · Accepted Answer

Current liabilities = .60 × $126,000 = $75,600Total assets = $141,800 + $126,000 = $267,800Current assets = $267,800 - $161,900 = $105,900Net working capital = $105,900 - $75,600 = $30,300

Bonner Collision Has Shareholders' Equity of $141,800