Question

A trader provided the following information.

$
non-current assets: 40000
inventory: 10000
trade receivables: 8000
cash at bank: 15000
trade payables: 20000
long-term loan: 12000

What was the working capital?
A $1000 B $13000 C $41000 D $53000

Answer 1

Working capital = $13,000

Explanation:

Given:

Non-current assets: 40000

Inventory: 10000

Trade receivables: 8000

Cash at bank: 15000

Trade payables: 20000

Long-term loan: 12000

Find:

Working capital

Computation:

Working capital = Current assets - Current liabilities

Working capital = [Inventory + Trade receivables + Cash at bank] - [Trade payables]

Working capital = [10,000 + 8000 + 15000] - [20000]

Working capital = 33000 - 20000

Working capital = $13,000