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If a firm has $100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital?

a) $0

b) $100

c) $1,200

d) $550

Firm Valuation Accounting Capital Projects Financials Economics
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/07/09
Upvote (0) Views (44) Followers (4) Answers (3) Report Question
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murad alhlaika
by murad alhlaika , Head of Middle Office , Central Bank of Jordan

None of the above choices are correct,

the correct answer it should be $200 as NWC

since CA =1200$, and CL1000$

Haytham Ahmed
by Haytham Ahmed , باحث قانونى , Prosecution GENERAL

I think the correct answer from my point of view is D   

Hamad AlHomayed
by Hamad AlHomayed , Corporate Recovery & Litigation Manager , The Saudi British Bank - Sabb

Net Working Capital would be1,200

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