Question

If a company has current assets of $178,000, total assets of $928,000, current liabilities of $132,000, and total liabilities of $643,000, how much working capital does it have?

Answer 1

The working capital of the company is calculated by subtracting current liabilities from current assets, which in this case amounts to $46,000.

Step-by-step explanation:

To calculate the working capital of a company, we subtract the current liabilities from the current assets. The formula for working capital is:

Working Capital = Current Assets - Current Liabilities

In this scenario, the company has current assets of $178,000 and current liabilities of $132,000. Using the formula:

Working Capital = $178,000 - $132,000 = $46,000

Therefore, the company's working capital is $46,000.