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A firm has $680 in inventory, $2,140 in fixed assets, $210 in accounts receivables, $250 in accounts payable, and $80 in cash. What is the amount of the net working capital

Answer :

danishmujtabaqureshi

Answer:

$720

Explanation:

Net working capital is the difference between the current assets and the current liabilities

In this question the current assets are as follows,

$80 in Cash

$680 in inventory

$210 in Accounts Receivables

The Current liabilities is $250 in Accounts Payable

Net Working Capital = Net Current Assets - Net Current Liabilities

                                  = 80 + 680 + 210 - 250

                                  = $720

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