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1. A small firm has $150 in cash, $60 in accounts receivable, $1,000 in fixed assets, $200 in accounts payable, and $1,010 in long-term debt.
1. A small firm has $150 in cash, $60 in accounts receivable, $1,000 in fixed assets, $200 in accounts payable, and $1,010 in long-term debt. What is the net working capital of this firm?
2. A large firm has $1,000,000 in cash, $975,000 in accounts receivable, $5,500,000 in inventory and $8,750,000 in fixed assets. The firm also has $1,050,000 in accounts payable, $6,250,000 in short term debt (i.e. debt to be repaid within the year), and $8,925,000 in long-term debt. What is the net working capital of this firm?
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