Which of the following items is part of the computation of net operating working capital for purposes of determining free cash flow?
A)Accounts payable
B)Fixed assets
C)Interest expense
D)Dividend payments

Question

Quizplus · Accepted Answer

Net operating working capital is calculated as current assets minus non-interest bearing current liabilities, so accounts payable would be included as a non-interest bearing current liability in the computation. Fixed assets, interest expense, and dividend payments are not directly related to the calculation of net operating working capital.

Which of the Following Items Is Part of the Computation