Which of the following items is included in the calculation of net operating working capital which determines free cash flow?
A)Accounts payable
B)Dividend payments
C)Fixed assets
D)Interest expense

Question

Quizplus · Accepted Answer

Net operating working capital is calculated as current assets minus non-interest-bearing current liabilities, which include accounts payable. Dividend payments, fixed assets, and interest expense are not included in this calculation.

Which of the Following Items Is Included in the Calculation