Red Roofs, Inc. has current liabilities of $24,300 and accounts receivable of $7,800. The firm has total assets of $43,100 and n

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Red Roofs, Inc. has current liabilities of $24,300 and accounts receivable of $7,800. The firm has total assets of $43,100 and n

et fixed assets of $23,700. The owners' equity has a book value of $21,400. What is the amount of the net working capital

Business

1 answer:

Bezzdna [24] · Answer 1 · 2023-06-29T10:09:27+03:00

The amount of the net working capital is -$4,900

Net working capital = $43,100 - $23,700 - $24,300 = -$4,900

What is the meaning of net working capital '?

The net working capital of a corporation is the difference between short-term assets and short-term liabilities (NWC). Positive net working capital indicates that a business has paid its debts and has funds left over to invest in other operational needs, which is fantastic.

Why is net working capital important?

Net working capital is significant because it provides insight into a company's liquidity and determines if it has sufficient funds to meet its immediate obligations. If the net working capital number is zero or higher, the company can meet its immediate obligations.

Learn more about net working capital: brainly.com/question/21852402

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