Question

A firm has $792 in inventory, $1,565 in fixed assets, $577 in accounts receivable, $339 in...

A firm has $792 in inventory, $1,565 in fixed assets, $577 in accounts receivable, $339 in net working capital, and $189 in cash. What is the amount of current liabilities?

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Answer #1

The Answer for the above question will be $1,219.

Computation will be as follows;

Current Asset – Current Liabilities = Net Working Capital

Therefore, Current Liabilities= Current Assets – Net Working Capital

Computation of Current Liabilities

Inventory

$792

Accounts Receivables

$577

Cash

$189

$1,558

- Net Working Capital

$339

Current Liabilities

$1,219

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