Calculate the net working capital from the information given below. the figures are in millions of dollars. cash and cash equivalents $ 90 inventories 450 accounts receivable 255 fixed assets 1,080 short-term investments 145 goodwill 90 accounts payable 220 long-term borrowings 660 short-term borrowings 85 interest payable 115

To compute for net working capital, deduct current liabilities from current assets. The word current here means assets and liabilities are expected to be received and paid within a year.

These are included in the Current Assets:Cash and Cash Equivalents 90

Accounts Receivable 255

Inventories 450

Short-term investments 145

with a total of 940
Current Liabilities:

Accounts Payable - 220

Short Term Borrowings - 85

Interest Payable - 115

With a total of 420

Net Working Capital = 940 – 420 = $520 million