Question

Check my work You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000. Calculate Goodman Bees' net working capital. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Net working capital Prev 1 of 10 Next >

Answer 1

Current assets =Cash & Mark. securities + Accounts receivables + Inventory      
400000+1200000+2100000      
3700000      
      
Current liabilities = accrued wages and taxes + Accounts payable + Notes payable      
500000+800000+600000      
1900000      
      
      
Net working capital = Current assets - current liabilities      
3700000   -1900000  
1800000      
      
So net working capital is   1,800,000.00