Question

A firm has current assets of $36,000, cash of $5,000, current liabilities of $20,000, total assets of $80,000 and total liabilities of $45,000. What is its net working capital?

a. $16,000
b. $28,000
c. $35,000
d. $44,000

Answer 1

Option A, $16000, is the right answer.

Step-by-step explanation:

The current assets = $36000

Cash = $5000

Current liabilities = $20000

Total assets = $80000

Total liabilities = $45000

Use the below formula to find the net working capial.

Net working capital = Current assets - Current Liabilities

Net working capital = 36000 – 20000

Net working capital = 16000

Therefore, option A, $16000 is correct.