Universal Financial, Inc. has total current assets of $1,200,000; long

Universal Financial, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total
current liabilities of $500,000; and long-term assets of $800,000. How much is the firm’s net
working capital?

A) $900,000 B) $600,000 C) $700,000 D) $1,000,000

ANSWER

C