Question

Q. work out the working capital Ratio:

cash at Bank 12000
stook. 18000
Debfors. 24000
Bills payable. 7000
creditors. 17000
cost of sales. 150000
> formula : working copital current Assets - current liabilities​

Answer 1

30,000

Explanation:

The computation of the working capital is shown below:

As we know that

Working capital = current assets - current liabilities

where

Current assets = Cash at bank + stock + debtors

= 12,000 + 18,000 + 24,000

= 54,000

And, the current liabilities = bill payable + creditors

= 7,000 + 17,000

= 24,000

So, the working capital is

= 54,000 - 24,000

= 30,000