The net working capital for a company with current assets of $77,000, quick assets of $46,000, total assets of $187,000 current liabilities of $65,000 and net sales of $91,000 would be:
A)$58,000.
B)$26,000.
C)$12,000.
D)$122,000.

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. So, NW = $77,000 - $65,000 = $12,000. Quick assets are not included in the calculation of net working capital. Net sales is irrelevant to the calculation. Therefore, the correct answer is C.

The Net Working Capital for a Company with Current Assets