In: Finance
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.
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