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11 April, 23:52

Taylor Industries has current liabilities of $54,900 and accounts receivable of $88,700. The firm has total assets of $395,000 and net fixed assets of $265,100. The owners' equity has a book value of $147,500. What is the amount of the net working capital

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  1. 12 April, 00:15
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    Working capital = $75,000

    Explanation:

    Working capital is the excess of current assets over current liabilities.

    Working capital = Current assets - current liabilities

    Current assets = Total assets - net fixed assets

    = 395,000 - 265,100 = 129,900

    Working capital = 129,900 - 54,900 = 75,000

    Working capital = $75,000
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