Prezas Company's balance sheet showed total current assets of $3,250, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital?

Net operating working capital is calculated as the difference between operating current assets and operating current liabilities. Operating current assets are those assets that are necessary for the day-to-day operations of a business, while operating current liabilities are the obligations that are due within a year that are related to the operations.

Total current assets = $3,250, Accounts payable = $975, Short-term notes payable = $600, Accrued wages and taxes = $250

To find the net operating working capital, we need to subtract the total operating current liabilities from the total operating current assets as follows:

Net operating working capital = Total current assets - Total current liabilities

First, calculate the total current liabilities by summing up the accounts payable, short-term notes payable, and accrued wages and taxes:

Total current liabilities = Accounts payable + Short-term notes payable + Accrued wages and taxes

Total current liabilities= $975 + $600 + $250

Total current liabilities = $1,825

Then, subtract this from the total current assets to find the net operating working capital:

Net operating working capital = Total current assets - Total current liabilities

Net operating working capital = $3,250 - $1,825

Net operating working capital = $1,425

Therefore, Prezas Company's net operating working capital is $1,425.