Question

A firm has $820 in inventory, $3,200 in fixed assets, $1,210 in accounts receivable, $890 in accounts payable, and $360 in cash. what is the amount of the net working capital

Answer 1

Given:
Inventory:                    $820
Fixed Assets:              $3,200
Accounts receivable: $1,210
Accounts payable:     $$890
Cash:                           $360

The amount of net working capital is
Cash and cash equivalents ($360)
+ Receivables ($1,210)
+ Inventory ($820)
+ Marketable investments ($3,200)
- Accounts payable ($890)
= $4,700

Answer: $4,700