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Fofino [41]
2 years ago
14

Calculate the net working capital from the information given below. the figures are in millions of dollars. cash and cash equiva

lents $ 90 inventories 450 accounts receivable 255 fixed assets 1,080 short-term investments 145 goodwill 90 accounts payable 220 long-term borrowings 660 short-term borrowings 85 interest payable 115 ​
Business
1 answer:
Evgesh-ka [11]2 years ago
3 0
To compute for net working capital, deduct current liabilities from current assets. The word current here means assets and liabilities are expected to be received and paid within a year.

These are included in the Current Assets:Cash and Cash Equivalents 90

Accounts Receivable 255

Inventories 450

Short-term investments 145

with a total of 940
Current Liabilities:

Accounts Payable - 220

Short Term Borrowings - 85

Interest Payable - 115

With a total of 420


Net Working Capital = 940 – 420 = $520 million
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