The above diagram shows a balance sheet for a certain company. If the company pays back all of its accounts payable today using cash, what will its net working capital be?
A) $131 million
B) $6 million
C) $88 million
D) $45 million

Question

The above diagram shows a balance sheet for a certain company. If the company pays back all of its accounts payable today using cash, what will its net working capital be?
A) $131 million 
B) $6 million 
C) $88 million 
D) $45 million

Quizplus · Accepted Answer

D) Both cash and accounts payable would fall by the same amount, leaving net working capital the same: 11eaabab_c0c7_10e4_b90e_6b5520012cf2_TB5536_11

The Above Diagram Shows a Balance Sheet for a Certain