Question

Diaz Manufacturing had current liabilities worth $33,351 and long-term debt worth $300,600 in 2014. In 2013, current liabilities were $694,376 and long-term debt was $400,600. The firm had cash of $405,549 , accounts receivable of $369,972 , inventories of $449,793 , and long-term assets worth $405,830 in 2014. Calculate the net working capital for Diaz Manufacturing in 2014.

Answer 1

total working capital = $1,191,963

Step-by-step explanation:

working capital = total current assets - total current liabilities

total current assets = cash + accounts receivable + inventories = $405,549 + $369,972 + $449,793 = $1,225,314

total current liabilities = $33,351

total working capital = $1,225,314 - $33,351 = $1,191,963