Question

A firm has current assets consisting of $100 cash, $300 of accounts receivable, and $400 of inventories. Its current liabilities include $200 of accounts payable, $100 of accrued wages and taxes, and $200 of notes payable to its bank. The cash balance is not considered "excess" cash. What is its NOWC?

Answer 1

What is its NOWC?

500

Step-by-step explanation:

NOWC=(CURRENT ASSETS-EXCESS CASH)-(CURRENT LIABILITIES-NOTES PAYABLE)