Spartan, Inc., is a manufacturer of automobile parts located in Greenville, South Carolina. At the end of the current fiscal year, the company had net working capital of $157,903. The company showed accounts payables of $94,233, accounts receivables of $83,112, inventory of $171,284, and cash and marketable securities of $12,311. What amount of notes payables does the firm have?

Question

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Net working capital is calculated as current assets minus current liabilities. The current assets are accounts receivables ($83,112), inventory ($171,284), and cash and marketable securities ($12,311), totaling $266,707. The current liabilities include accounts payables ($94,233) and notes payables. Given net working capital is $157,903, we can set up the equation: $266,707 - ($94,233 + notes payables) = $157,903. Solving for notes payables gives $14,571.