Question

Bernard is an accountant. He analyzed that the current assets for his company on a given date are $400,000. The current liabilities are $150,000. What is the working capital of the business?
A.
$200,000
B.
$400,000
C.
$ 250,000
D.
$150,000
E.
$200,000

Answer 1

Answer:

$250,000

Explanation:

Working capital is the difference between a company's current assets and current liabilities.

In this case, the current assets are  $400,000, While the current liabilities are $150,000.

Working capital

= $400,000 - $150,000

=$250,000