Question

A balance sheet has total assets of $1,398, fixed assets of $981, long-term debt of $523, and short-term debt of $142. What is the net working capital?

Answer 1

$275

Step-by-step explanation:

Current assets = total assets - fixed assets = $1,398 - $981 = $417

Normally net working capital = current assets - current liabilities; and in this simple case, we assume current liabilities is short-term debt only.

Then net working capital = current assets - short-term debt = $417 - $142 = $275