Question

A firm has $848 in inventory, $1,740 in fixed assets, $668 in accounts receivable, $416 in net working capital, and $231 in cash. What is the amount of current liabilities

Answer 1

$1,331

Step-by-step explanation:

With regards to the above information, we need to calculate first current assets.

Current assets = $848 in inventory + $668 in accounts receivable + $231 in cash

Current assets = $1,747

Therefore,

Current liabilities = Current assets - Net working capital

Current liabilities = $1,747 - $416

Current liabilities = $1,331