Question

Siskiyou Corp. has cash of $75,000; short-term notes payable of $100,000; accounts receivables of $275,000; accounts payable of $135,000: inventories of $350,000; and accrued expenses of $75,000. What is the firm's net working capital

Answer 1

Answer: $390000

Step-by-step explanation:

First and foremost, we need to calculate the current assy from the given question which would be:

= $75000 + $275000 + $350000

= $700,000

Also, the current liabilities will be:

= $100000 + $135000 + $75000 = $210000

Therefore, the firm's net working capital willbe the difference between the assets and the liabilities calculated above. This will be:

= $700,000 - $210,000

= $390,000