Answer:
The amount of the net working capital is $55,500
Explanation:
The net working capital is calculated by the following formula:
Net working capital = Current assets - Current liabilities
The firm owes a total of $126,000 of which 60 percent is payable within the next year.
Current liabilities = Total liabilities - liabilities paid in next year = $126,000 - 60% x $126,000 = $50,400
Basing on accounting equation:
Total assets = Total liabilities + shareholders' equity = $126,000 + $141,800 = $267,800
Current assets = Total assets - fixed assets = $267,800 - $161,900 = $105,900
Net working capital = $105,900 - $50,400 = $55,500
