Question

use the following information to calculate net working capital: - current assets = $115 - current liabilities = $30 - long - term debt = $140 - $85 - $55 $75 $85

Explanation:

Step1: Recall the formula for net working capital

The formula for net working capital (NWC) is \( \text{NWC} = \text{Current Assets} - \text{Current Liabilities} \). Long - term debt is not relevant for calculating net working capital.

Step2: Substitute the given values into the formula

We know that current assets \( = \$115 \) and current liabilities \( = \$30 \). Substituting these values into the formula, we get \( \text{NWC}=\$115 - \$30 \).

Step3: Calculate the result

\( \$115-\$30 = \$85 \).

Answer:

\(\$85\) (corresponding to the option with value \$85)