Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010 Balance Sheet
Dana Dairy Products
December 31, 2010
-The net working capital for Dana Dairy Products in 2010 was ________. (See Table 3.2)
A) $10,325
B) $ 1,425
C) -$ 1,425
D) $14,250

Question

Table 3.2
Dana Dairy Products Key Ratios  Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010  Balance Sheet
Dana Dairy Products
December 31, 2010 
-The net working capital for Dana Dairy Products in 2010 was ________. (See Table 3.2)
A) $10,325 
B) $ 1,425 
C) -$ 1,425 
D) $14,250

Quizplus · Accepted Answer

Net working capital is calculated by subtracting current liabilities from current assets. Looking at the balance sheet in Table 3.2, we can see that current assets are $60,100 and current liabilities are $61,525. Therefore, net working capital is -$1,425. The correct answer is choice C.

Table 3.2 Dana Dairy Products Key Ratios Income Statement