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Jones Corporation reported current assets of 193,000 and current liabilities of137,000 on its most recent balance sheet. What is the working capital?

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Final answer:

Jones Corporation's working capital is calculated by subtracting current liabilities from current assets, resulting in a working capital of $56,000. This measure indicates the company's short-term financial health.

Step-by-step explanation:

The student has inquired about the calculation of working capital, which is a key financial metric. To determine working capital, you subtract the firm's current liabilities from its current assets. In the case of Jones Corporation, which reported current assets of $193,000 and current liabilities of $137,000, the working capital would be:

Working Capital = Current Assets - Current Liabilities
Working Capital = $193,000 - $137,000
Working Capital = $56,000

Thus, Jones Corporation has a working capital of $56,000. This figure represents the company's short-term financial health and its ability to cover its short-term obligations with its short-term assets.

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