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The Rocco Company has a working capital of $540,000 and current assets of $810,000: What is the question or information related to the company's financials?

User Schoob
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Final answer:

Working capital is calculated as current assets minus current liabilities. The Rocco Company's current liabilities can be determined to be $270,000 by subtracting its working capital of $540,000 from its current assets of $810,000.

Step-by-step explanation:

The subject of the question is to determine additional financial information related to The Rocco Company's current financial position based on provided figures for working capital and current assets. Working capital is the difference between current assets and current liabilities. We are not given the current liabilities explicitly, but it can be calculated because we know that working capital is $540,000 and current assets are $810,000.

To find the current liabilities, we can use the formula for working capital:

Working Capital = Current Assets − Current Liabilities

Reorganizing the formula to solve for current liabilities gives us:

Current Liabilities = Current Assets − Working Capital

Substituting the known values from The Rocco Company:

Current Liabilities = $810,000 − $540,000 = $270,000

Therefore, The Rocco Company has current liabilities totaling $270,000.

User Voskart
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