Homework SourseYou are evaluating the balance sheet for Goodmans Bees Corpo
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. |
Solution
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) | $1,170,000 |
