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BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant...

BALANCE SHEET The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $3.5 million and net plant and equipment equals $2.5 million. It has notes payable of $250,000, long-term debt of $1,050,000, and total common equity of $2 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet.

What is the firm's net working capital?

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Answer #1

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Net Working Capital = Current Asset - Current Liability

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