2. Swinnerton Clothing Company's balance sheet showed total current assets of $900, all of which were required in operations. Its current liabilities consisted of $200 of accounts payable, $500 of 6% short-term notes payable to the bank, and $90 of accrued wages and taxes. What was its net operating working capital that was financed by investors?

Question

Business

Maddison Lynch

31 May, 06:31

2. Swinnerton Clothing Company's balance sheet showed total current assets of $900, all of which were required in operations. Its current liabilities consisted of $200 of accounts payable, $500 of 6% short-term notes payable to the bank, and $90 of accrued wages and taxes. What was its net operating working capital that was financed by investors?

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Answers (1)

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Kevin · Answer 1

net operating working capital = $610

Explanation:

given data

total current assets = $900

current liabilities = $200

accrued wages and taxes = $90

to find out

net operating working capital

solution

we get here net operating working capital will be express as

net operating working capital = total current assets - current liabilities - accrued wages and taxes ... 1

put here value in equation 1 we get

net operating working capital = $900 - $200 - $90

net operating working capital = $610