You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $1,100,000, inventory = $2,000,000, accrued wages and taxes = $500,000, accounts payable = $600,000, and notes payable = $100,000. Calculate Goodman's Bees' net working capital.
A) $2,000,000
B) $2,100,000
C) $1,400,000
D) $1,900,000

Question

Quizplus · Accepted Answer

Net working capital = Current assets - Current liabilities= (Cash and marketable securities + Accounts receivable + Inventory) - (Accrued wages and taxes + Accounts payable + Notes payable)= ($200,000 + $1,100,000 + $2,000,000) - ($500,000 + $600,000 + $100,000)= $2,100,000

You Are Evaluating the Balance Sheet for Goodman's Bees Corporation