Question

Crane 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 $7,149,800, accounts receivables of $3,465,300, short-term notes payable worth $1,100,600, and other current assets of $121,455.
1. What is the company's net working capital?

Answer 1

$6,712,053

Step-by-step explanation:

Total current assets:

= cash and marketable securities + Inventory + accounts receivables + Other current assets

= $1,235,455 + $7,149,800 + $3,465,300 + $121,455

= $11,972,010

Total current liabilities:

= accounts payable + short-term notes payable

= $4,159,357 + $1,100,600

= $5,259,957

company's net working capital:

= Total current assets - Total current liabilities

= $11,972,010 - $5,259,957

= $6,712,053