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

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Business

Zion Combs

31 December, 16:59

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

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Joyce Schmitt · Answer 1

Given

Cash and cash equivalents

$ 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

Net working capital is current assets less current liability. Current assets: Cash and cash equivalents $ 90 Inventories 450 Accounts receivable 255 Short-term investments 145 Current liabilities: Accounts payable 220 Short-term borrowings 85 Interest payable 115 Total current asset: 940 Total current liabilities: 420 Net working capital = 940 - 420 = 520