Question

Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $630,000, Accounts receivable = $830,000, Inventory = $530,000, Accrued wages and taxes = $71,000, Accounts payable = $203,000, and Notes payable = $1,030,000. What is Cypress's net working capital?

Answer 1

NET WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES
	AMOUNT
CURRENT ASSETS
Cash and marketable securities	$              6,30,000
Account Receivable	$              8,30,000
Inventory	$              5,30,000
TOTAL OF CURRENT ASSETS (A)	$            19,90,000
CURRENT LIABILITIES
Accrued Wages and taxes	$                  71,000
Account Payable	$              2,03,000
Notes Payable	$            10,30,000
TOTAL CURRENT LIABILITIES	$            13,04,000
NET WORKING CAPITAL (A-B)	$              6,86,000
Answer = Cypers's Net Working Capital $ 686,000