You are examining a company's balance sheet and find that it has total assets of $21,156,...

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

Solutions

Expert Solution

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

jeff jeffy answered 2 years ago

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