You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable,...

You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable, $25,000 in accrued expenses on 12/31/2017. What was your net working capital balance on this date?

Expert Solution

Net Working Capital =Current Assets-(Payables + Accruals) or

Current Assets - Current Liabilities

Current Assets

Cash- $60,000

Accounts Receivable $40,000

Inventory $100,000

Totals $200,000

Current Liabilities

Accounts Payables $65,000

Accrued Expenses $25,000

Total $90,000

The Net working capital balance on 12/31/2017=Current Assets- Current Liabilties=$200,000-$90,000=$110,000

ekkarill92 answered 2 years ago

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