Question

Le Son, Inc., has current liabilities of $11,700 an accounts receivable of $15,200. The firm has total assets of $43,400 and net fixed assets of $24,800. The owners' equity has a book value of $21,000. What is the amount of the net working capital

Answer 1

Answer:

Explanation:

These terms are culled from Balance sheet and Balance sheet have two sides,  The Debit and Credit side. The debit side contain the Capital, Current Liabilities among others and The Credit side contain The Fixed asset and the Current asset

The amount of Net working capital is derived from Current asset - Current Liability

Net working capital  = Current asset - Current Liability

Where Current asset = Total asset - Net Fixed asset= 43,400-24,800 = 18,600

Where Current Liability = 11,700

Therefore, Net working capital  =  $18,600 - $11,700 = $6,900

The amount of the net working capital = $6,900