Answer:
$37,000
Step-by-step explanation:
Working capital indicates the difference between a company's current assets and its current liabilities.
Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.
in this case,
Current assets include
Inventory $50,000
Cash at Bank $ 5,000
prepaid rent $5,000
Total current assets $60,000
current liabilities
Notes Payable $20,000
tax payable $3,000
Total current liabilities $23,000
Working capital
= $60,000 - $23,000
= $37,000