Math Problem Statement
Solution
To calculate Net Working Capital (NWC), we use the formula:
Step 1: Determine Current Assets
From the total assets ($1,892) and fixed assets ($1,306):
Step 2: Determine Current Liabilities
From the information provided, the current liabilities are the short-term debt:
Step 3: Calculate Net Working Capital
Final Answer:
Would you like more details or assistance with another calculation?
Here are some related questions for exploration:
- How does net working capital influence a company's liquidity?
- What are other components of current assets and current liabilities?
- Can net working capital be negative, and what does it imply?
- How does this calculation relate to the overall health of a company's balance sheet?
- How are long-term debts accounted for in working capital analysis?
Tip: Always ensure accurate classification of assets and liabilities when analyzing financial statements to avoid misinterpretations!
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Math Problem Analysis
Mathematical Concepts
Accounting
Working Capital Calculation
Basic Arithmetic
Formulas
Net Working Capital = Current Assets - Current Liabilities
Theorems
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Suitable Grade Level
College or Professional Level
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