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Rao Corporation has the following balance sheet. How much net operating working capital does the firm have?

Balance Sheet
Cash

$ 10

Accounts payable

$ 20

Short-term investments

Accruals

20

Accounts receivable

50

Notes payable

50

Inventory

40

Current liabilities

$ 90

Current assets

$130

Long-term debt

0

Net fixed assets

100

Common equity

30

Retained earnings

50

Total assets

$230

Total liab. & equity

$230

Select one:

a. $79.86

b. $54.00

c. $60.00

d. $66.00

e. $72.60

Answer :

Answer:

Net operating working capital = $ 60.

Explanation:

As we know that Net operating working capital = (cash+account receivable+Inventory) - (Account payable + Accrued expenses)

           = (10+50+40) - (20+20)

          = $ 60

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