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The following data were taken from the records of Menendez Company: Current assets $5,000 Property, plant, and equipment 10,000 Current liabilities 3,500 Long-term liabilities 5,000 Stockholders' equity
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29 votes
The following data were taken from the records of Menendez Company:

Current assets $5,000
Property, plant, and equipment 10,000
Current liabilities 3,500
Long-term liabilities 5,000
Stockholders' equity 6,500

What is Menendez Company's working capital?
a. $1,500
b. $5,000
c.1.00
d. $6,500

User AkaRem
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1 Answer

25 votes
25 votes

Answer: a. $1,500

Step-by-step explanation:

Working capital is calculated by deducting current liabilities from current assets. It is meant to show the operating liquidity of a company within a period.

Working capital = Current assets - Current liabilities

= 5,000 - 3,500

= $1,500

User Konstantin Kuznetsov
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