You are evaluating the balance sheet for Goodman\'s Bees Corporation. From the b
ID: 2825847 • Letter: Y
Question
You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $560,000, accounts receivable = $1,600,000, inventory = $1,300,000, accrued wages and taxes = $630,000, accounts payable = $930,000, and notes payable = $730,000.
You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $560,000, accounts receivable = $1,600,000, inventory = $1,300,000, accrued wages and taxes = $630,000, accounts payable = $930,000, and notes payable = $730,000.
Explanation / Answer
net working capital = total current assets - total current liabilities.
Goodman Bees' net working capital = $1,170,000.
cash and marketable securities $560,000 accounts receivable $1,600,000 inventory $1,300,000 total current assets $3,460,000 current liabilities accrued wages and taxes $630,000 accounts payable $930,000 notes payable $730,000 Total current liabilities $2,290,000 NEt working capital (3,460,000 - 2,290,000) $1,170,000Related Questions
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