Question

Universal Financial, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total current liabilities of $500,000; and long-term assets of $800,000. How much is the firm's net working capital

Answer 1

Answer: $700,000

Step-by-step explanation:

Total current assets = $1,200,000

Long-term debt = $600,000

Total current liabilities = $500,000

Long-term assets = $800,000

The firm's net working capital would be:

= total current assets - total current liabilities

= $1,200,000 - $500,000

=$700,000.