A firm has $1,800 in fixed assets, $400 in net working capital, $200 in accounts payable, and $100 in cash. What is the amount of the current assets?

A) $200
B) $400
C) $500
D) $600
E) $700

Question

A firm has $1,800 in fixed assets, $400 in net working capital, $200 in accounts payable, and $100 in cash. What is the amount of the current assets?A)  $200B)  $400C)  $500D)  $600E)  $700

Jordan Brown · Accepted Answer

Final Answer : D, Explanation :  Current assets are calculated as net working capital plus current liabilities. Given net working capital is $400 and accounts payable (a current liability) is $200, the current assets are $400 + $200 = $600.

A firm has $1,800 in fixed assets, $400 in net working capital, $200 in accounts payable, and $100 in cash. What is the amount of the current assets?

A) $200
B) $400
C) $500
D) $600
E) $700

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