Question

D Question 39 1 pts Wu Systems has the following balance sheet. How much net operating working capital does the firm have? Cash Accounts receivable Inventory Current assets Net fixed assets S 100 Accounts payable $ 200 135 565 $900 600 300 500 $2.300 650 Accruals 550 S 1,300 S 1,000 Notes payable Current liabilities Long-term debt Common equity Retained earnings Total liab, & equity Total assets $ 2,300 O $965 O $1,177 $772 O $1,033 $1,042 Previous Next

Answer 1

Operating current assets = Cash + Accounts receivables + Inventory = $100 + $650 + $550 = $1,300

Operating current liabilities = Accounts payables + Accruals = $200 + $135 = $335

Net operating working capital = Operating current assets - Operating current liabilities = $1,300 - $335 = $965