A firm has the following current assets: Cash: $40,000 Accounts Receivable: $90,000...

70.2K

Verified Solution

Question

Accounting

A firm has the following current assets:
Cash: $40,000
Accounts Receivable: $90,000
Inventory: $70,000
Current liabilities consists of accounts payable of $90,000, notes payable of $50,000, and
accrued expenses of $60,000. Assume all cash is used in operations, and there is no excess cash
What is the Net Operating Working Capital (NOWC)?
$20,000
$10,000
$30,000
$50,000
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students