Question

Sandhill 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 $7,134,300, accounts receivables of $3,454,000, short-term notes payable worth $1,122,400, and other current assets of $121,455.

What is the company's net working capital?

Answer 1

Answer:

$6,663,453

Explanation:

Cash and marketable securities = $1,235,455

Inventory = $7,134,300

Accounts Receivables = $3,454,000

Other current assets = $121,455

Total Current Assets:

= Cash and marketable securities + Inventory + Accounts Receivables + Other current assets

= $1,235,455  + $7,134,300  +  $3,454,000 + $121,455

= $11,945,210

Accounts payable = $4,159,357

Short term notes payable = $1,122,400

Total Current Liabilities:

= Accounts payable + Short term notes payable

= $4,159,357 + $1,122,400

= $5,281,757

Net Working Capital = Total Current Assets - Total Current Liabilities

                                  = $11,945,210 - $5,281,757

                                  = $6,663,453