Question
In: Finance
Working capital: Winston Electronics reported the following information at its annual meetings. The company had cash...
Working capital: Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,235,550, accounts payables worth $4,160,590, inventory of $7,122,030, accounts receivables of $3,488,900, notes payable worth $1,152,480, and other current assets of $122,410. What is the company’s net working capital?
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Expert Solution
| Net Working Capital | = | Current Assets | - | Current Liabilities | |||
| = | $ 1,19,68,890 | - | $ 53,13,070 | ||||
| = | $ 66,55,820 | ||||||
| Working: | |||||||
| # 1: Calculation of current assets: | |||||||
| Cash and marketable securities | $ 12,35,550 | ||||||
| Inventory | $ 71,22,030 | ||||||
| Accounts receivable | $ 34,88,900 | ||||||
| Other Current assets | $ 1,22,410 | ||||||
| Total Current assets | $ 1,19,68,890 | ||||||
| # 2: Calculation of current liabilities: | |||||||
| Accounts Payable | $ 41,60,590 | ||||||
| Notes Payable | $ 11,52,480 | ||||||
| Total Current assets | $ 53,13,070 | ||||||
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