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What is the net working capital?

Commerce
JAMB 2007

What is the net working capital?

  • A. N 6 000 000
  • B. N 16 000 000
  • C. (N 11 000 000)
  • D. N 25 000 000
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Correct Answer: Option B
Explanation

Net working capital is the difference between a company's total current assets and current liabilities. Net Working Capital = Current Assets - Current Liabilities

Current assets = 5,000,000 + 22,000,000 = 27,000,000

Current liabilities = 11,000,000

Net working capital = 27,000,000 - 11,000,000 = 16,000,000


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