Question

Ivanhoe Electronics reported the following information at its annual meetings: The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,145,200, accounts receivables of $3,489,700, short-term notes payable worth $1,138,700, and other current assets of $121,455. What is the company's net working capital

Answer 1

The answer is $6,693,753

Step-by-step explanation:

Net Working Capital = current assets - current liabilities

Current assets:

Cash and marketable securities

Inventory

Accounts receivable

Other current assets

$1,235,455 + $7,145,200 + $3,489,700 + $121,455

Total current assets = $11,991,810

Current liabilities:

Accounts payable = $4,159,357

Notes payable = $1,138,700

Total current liabilities = $5,298,057

Net working capital

= $11,991,810 - $5,298,057

= $6,693,753