Question

Ch You are evaluating the balance sheet for Goodman's Bees Corporation From the and marketable securities $400,000, accounts receivable $1.200,000, nventory - $2100,000,accrued wages and taxes $500,000, accounts payable $800,000, and notes payable $600,000 balance sheet you find the following balances: cash Calculate Goodman Bees' net working capital. (Enter your answer in dollars not in millions. Round your answer to the nearest doller amount.) Net working capital

Answer 1

Goodman Bees Net working capital

Net working capital = Current assets - Current Liabilities

Current assets = Cash and marketable securities + Accounts receivable + Inventory

= $400,000 + $1,200,000 + $2,100,000

= $3,700,000

Current liabilities = Accrued wages and taxes + Accounts payable + Notes payable

= $500,000 + $800,000 + $600,000

= $1,900,000

Goodman Bees Net working capital = $3,700,000 - $1,900,000

= $1,800,000