Balance Sheet You are evaluating the balance sheet for Campus Corporation.From the balance sheet you find the following balances: cash and marketable securities = $400,000,accounts receivable = $200,000,inventory = $100,000,accrued wages and taxes = $10,000,accounts payable = $300,000,and notes payable = $600,000.What is Campus's net working capital?
A)-$210,000
B)$700,000
C)$910,000
D)$1,610,000

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. 
In this case, the current assets are $700,000 (sum of cash and marketable securities, accounts receivable, inventory) and the current liabilities are $900,000 (sum of accrued wages and taxes, accounts payable, notes payable). 
So, Net working capital = current assets - current liabilities = $700,000 - $900,000 = -$210,000. 
Therefore, the best choice is A.

Balance Sheet You Are Evaluating the Balance Sheet for Campus