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This posting addresses net working capital.

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Solar Solutions reports the following account balances: inventory of $6,200 (equipment), accounts payable of $15,500, cash of $11,200, and accounts receivable of $12,400. How much does the firm have in net working capital?

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The solution provides the exact calculations for Solar Solutions and shows how to calculate their net working capital.

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Net working capital is current assets - current liabilities and is a measure of liquidity.

Current assets (inventory + cash + ...

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