In: Finance
You are examining a company's balance sheet and find that it has total assets of $21,156, a cash balance of $2,424, inventory of $5,169, current liabilities of $6,341 and accounts receivable of $2,935. What is the company's net working capital?
Multiple Choice
$4,187
$1,763
$982
$6,151
$14,815
Option (a) is correct
For net working capital, we need to find the current assets and current liabilities as below:
Current assets = Cash + Inventory + Accounts receivable
Current assets = $2424 + $5169 + $2935 = $10528
Current liabilities = $6341
Now,
Working capital = Current assets - Current liabilities
Working capital = $10528 - $6341 = $4187