Holiday Confections has the following balance sheet figures for the year ending December 31, 2018: Cash $1,000 Marketable securities 5,000 Inventory 3,000 $9,000 Accounts payable $2,000 Notes payable 1,000 $3,000 What is the net working capital?
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Holiday Confections has the following
Cash $1,000
Marketable securities 5,000
Inventory 3,000
$9,000
Accounts payable $2,000
Notes payable 1,000
$3,000
What is the net working capital?
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