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You are evaluating the balance sheet for Campus Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $800,000, Accounts receivable = $200,000, Inventory = $100,000, Accrued wages and taxes = $10,000, Accounts payable = $280,000, and short-term notes payable = $600,000. What is Campus's net working capital?

Respuesta :

sadddamkashmiri801

Answer:

Net Working Capital  are $120,000

Explanation:

As we know:

Net Working Capital = Current Assets - Current Liabilities

Here current assets are:

  1. Cash and marketable securities
  2. Accounts Receivable
  3. Inventory

And Current Liabilities are:

  1. Accrued wages and taxes
  2. Accounts payable
  3. Short-term notes payable

So by putting values in the above equation, we have:

Net Working Capital =  ($800,000 + $200,000 + $100,000) - ($10,000 + $280,000 + $600,000) = $1,100,000 - $890,000 = $120,000