Current assets are $94,700. Accounts payable is $36,200, net income is $12,400 and sales are $110,800....

Current assets are $94,700. Accounts payable is $36,200, net income is $12,400 and sales are $110,800. What is the net working capital turnover rate?

Select one:

a. 0.21

b. 0.85

c. 1.68

d. 1.89

e. None of the above.

Expert Solution

Current Assets = $ 94,700

Current liabilities = $ 36,200

Net Working capital = Current Assets - Current liabilities = 94,700 - 36,200 = $ 58,500

Net Working capital turnover rate = Sales / Net working capital = 110,800/58,500 = 1.89 times

Answer is d. 1.89

jeff jeffy answered 2 years ago

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