Myriad Canning Company has the following balance sheet figures for the year ending December 31,200X: Cash $1,000
Marketable securities $5,000
Inventory $3,000
Total current assets $9,000
Accounts payable $2,000
Notes payable $1,000
Total current liabilities $3,000
What is its net working capital?
A) $6,000
B) $9,000
C) $1,000
D) $3,000

Question

Myriad Canning Company has the following balance sheet figures for the year ending December 31,200X: Cash	$1,000
Marketable securities	$5,000
Inventory	 	$3,000
Total current assets	$9,000
Accounts payable	$2,000
Notes payable	 	$1,000
Total current liabilities	$3,000
What is its net working capital?
A) $6,000
B) $9,000
C) $1,000
D) $3,000

Quizplus · Accepted Answer

Net working capital is calculated as total current assets minus total current liabilities. Here, it is $9,000 - $3,000 = $6,000.

Myriad Canning Company Has the Following Balance Sheet Figures for the Year