Which of the following is corporation’s net working capital using the following items from their balance...

Which of the following is corporation’s net working capital using the following items from their balance sheet: Cash = $600,000, Accounts Receivable = $2,000,000, Inventory = $800,000, Accrued Expenses = $500,000, Accounts Payable = $800,000, Notes Payable = $1,500,000.

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Expert Solution

Calculate the net working capital as follows:

Net working capital = Current assets - Current liabilities

Net working capital = $600,000 + $2,000,000 + $800,000 - $500,000 - $800,000 - $1,500,000

Net working capital = $600,000

jeff jeffy answered 1 year ago

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